Enq 23 �pik Tog Discussion Threads

[profitaker] 13/1/2022 16:18

£1 bid. Never thought I'd see that !

[bricklayer] 01/9/2021 18:31

Enquest have refinanced senior credit facility and have a clause in that deal to reduce interest payment to 4% and extend that facility for 5 years if they refinance the bonds by Oct 2022 the bonds have a clause for repayment at 21 days notice (from memory) so if oil continues doing well Bonds will not see 2023 in my view. Likely Retail Bonds will get repaid and High yield bonds refinanced at lower rate spring 2022
If oil plays ball? Am not selling below par and the 7% will accrue till redemption

[eastwind] 31/8/2021 18:57

ENQUEST PLC
15 October 2020
Automatic extension of maturity date of EnQuest's High Yield Notes and Retail Notes
EnQuest PLC ("EnQuest") today confirms the automatic extension of the maturity date of its 7.00 per cent.
Extendable PIK Toggle Notes originally due 2022 (the "Retail Notes") and the anticipated automatic
extension of the maturity date of its 7.00 per cent. PIK Toggle Senior Notes originally due 2022 (the "High
Yield Notes").
Under the existing terms of the Retail Notes, the maturity date is automatically extended to 15 October 2023
(from 15 April 2022) if EnQuest's senior credit facility is not repaid or refinanced in full by 15 October 2020.
Similarly, under the existing terms of the High Yield Notes, the maturity date is automatically extended to 15
October 2023 (from 15 April 2022) if the senior credit facility is not repaid or refinanced by 30 October 2020.
As previously announced, EnQuest reduced its senior credit facility by $325 million during the financial year
ended 31 December 2019 and made a further accelerated voluntary repayment of $35 million in January
2020; no senior credit facility amortisations are due in 2020. At the end of September, the Group's outstanding
senior credit facility remained at $425.0 million, excluding payment in kind interest.

[bricklayer] 31/8/2021 18:43

They do pay 7% not likely to be extended again more chance of earlier repayment with oil price and new finance deal at 4.25% that has incentivised the repayment of the Bonds by Oct 2022 by an extension on RCF and a reduction to 4% if Bonds are refinanced
so expect news on earlier repayment.

[king suarez] 31/8/2021 17:02

Thanks - can it be further extended past Oct 23?

[spangle93] 31/8/2021 15:53

KS - yes, maturity is extended, as you noted.

[king suarez] 31/8/2021 15:27

Hi,

I am correct in thinking if I purchased ENQ1 today, at say 94.5p, I would be getting a return of around 17.5% annualised?

Assuming ENQ repay the debt, which at this oil price looks highly likely(?) you would get 5.5p in capital and 2.75p as a final interest payment on 15 Feb 2022 - giving you 8.25p total return in 6 months. 8.25/94.5 x 2 = 17.5% annualised return?!

Edit: Apologies - looks like maturity was extended to Oct 23, though that references 7% bond, not 5.5%?

[ditchsid] 11/8/2021 15:43

ENQUEST PLC
(the "Company")
Notice to holders ("Noteholders") of the Company's
£190,534,573 7 per cent. Extendable PIK Toggle Notes due 2023
(ISIN: XS0880578728, Common Code: 088057872)
(the "Notes")
Notice is hereby given that the Cash Payment Condition (Condition 5A(a) of the terms and conditions
of the Notes (the "Conditions")) in respect of the Interest Payment Date falling on 15 August 2021
has been satisfied and interest due on the Notes on such Interest Payment Date will be paid in cash
(in accordance with Condition 5(a) of the Conditions).
The Record Date for determining the entitlement of individual Noteholders to the interest paid in
cash will be the close of business on 13 August 2021.
Words and expressions defined in the Conditions shall have the same meaning when used in this
notice.

[ditchsid] 11/8/2021 15:41

See post #489

[spangle93] 11/8/2021 09:13

Good question, catsick

Last year, the RNS noted
Pursuant to Condition 5A(b) of the terms and conditions of the Notes (the "Conditions"), notice is hereby given that the Cash Payment Condition in respect of the Interest Payment Date falling on 15 August 2020 has not been satisfied and interest due on the Notes will not be paid in cash
The "record date" for determining the entitlement of the individual Noteholders will be the close of business on 14 August 2020 being the business day immediately prior to the PIK Interest Payment Date).

But no RNS this year

I can tell you that the coupon, or PIK, was received into my account in previous years around 17-19 August.

[catsick] 11/8/2021 08:45

When do these go ex coupon ?

[lonrho] 02/8/2021 07:32

Thanks Grahamg8

[grahamg8] 02/8/2021 06:51

Lonrho, I don't see an issue. ENQ1 trade 'clean'. The quoted price is what you pay and includes an allowance for accumulation of interest whether to be paid as cash or kind. Most other bonds trade 'dirty', the price quoted excludes interest earned to purchase date which is then added to the amount due. There is a good reason for ENQ1 trading this way as cash can be calculated down to the nearest pence, but if the payment were to be PIK there is no way of splitting the bonds into units of less than 1. Although no PIK announcement on the last day of the month might seem relevant anyone with the inclination could have worked out with a fair degree of certainty that the payment would be cash some time ago. If trading were to switch from clean to dirty on a particular date then trading immediately before that date leads to an instant gain for the buyer and an instant notional loss for the seller. Fairer and simpler to leave trading as normal. So I don't expect any change to trading terms now we are in August.

ADD

And once the payment date is reached the bonds effectively go XD/XI and the quoted price should drop by 3.5p, £3.5 in ADVFN terminology.

[lonrho] 31/7/2021 21:17

Wonder if you will still be able to buy without accrued interest on Monday

[sauron] 31/7/2021 20:59

Thanks. Sorry I missed your previous post

[ditchsid] 31/7/2021 15:43

www.enquest.com/investors/corporate-actions/retail-bond

Confirmation

[sauron] 31/7/2021 13:48

The conditions have been met to pay interest as cash for the 6 months February to July inclusive, given that the average Brent price is more than $65 for the period. I put it at $67 to $68 looking at the graph.

[ditchsid] 14/7/2021 09:29

www.enquest.com/investors/corporate-actions/retail-bond

[ditchsid] 14/7/2021 09:23

Last PIK notice was 29 January 2021
[...]
Expect next at end of this month.

[lonrho] 14/7/2021 08:36

According to post on lse Enquest debt raised to B from CCC+ on debt refinancing progress.

[lonrho] 14/7/2021 08:22

Looks like its a strong possibility, should hear at the end of this month.

[spangle93] 14/7/2021 08:18

No PIK notice so far (June 30 in 2020), and the oil price is high, so we could get a distribution next month