Enq 23 �pik Tog Discussion Threads

[verymaryhinge] 09/4/2022 19:52

You get coupon. Then you accrue coupon at 9pct from 27th April.

[grahamg8] 09/4/2022 14:59

Damp seaweed, you get the interest but only to 26th April....
extract from the RNS: (ii) an exchange fee of GBP0.015 for every GBP1 in principal amount of Existing Notes exchanged for participating in the Exchange Offer, in addition to any accrued but unpaid interest payable on the Existing Notes, to, but excluding 27 April 2022.
The new notes should trade at a premium due to the higher coupon. But on the other hand the repayment is delayed until 2027 which will be seen as an additional risk. We shall only be left wondering for just over two weeks.

[eastwind] 09/4/2022 14:30

You will get the accumulated interest as well. That is about 2.4 months (15 Feb to 26 April) worth of interest.

[damp seaweed] 09/4/2022 08:58

I’m not sure I’m reading this correctly. But it appears that if you swap to the new bond you will get a kick back of 1.5%. BUT you will forego the accumulated interest payment that is due on 27th April. Which as they payout every 6 months is worth ~3.5%.
I would like to think I’ve misinterpreted this clause and interest has been accumulating daily and will be paid up until the date of the swap…….but I’m far from certain.

[verymaryhinge] 09/4/2022 04:35

HL - speak to the team, they’ll take an order for new. Let me know if you succeed. Ta.

[hindsight] 08/4/2022 20:26

Topped mine up in Idealing today and they soon appeared on the corporate action total amount availiable to roll

[laughton] 08/4/2022 16:45

Depending on the price and the dealing costs it might be cheaper to buy the existing 7% and then exchanging for the 9%.

Bear in mind that you get the accrued which you won't pay for when buying and a 1.5% sweetner. On the other side, there shouldn't be any dealing costs for subscribing to the new.

iDealing have said they won't be offering the new, other than by exchange.

[spangle93] 08/4/2022 16:19

Got my invitation to transfer notes at H-L

However, there was no opportunity offered to add to my position by buying additional notes in the IPO.

Has anyone been offered this yet?

[catsick] 08/4/2022 08:04

I have my bonds with iDealing and its just a box to fill out how many of the bonds you hold you want to flip to the new issue, no brainer really so I converted them all

[glavey] 07/4/2022 14:46

9% seems more worrying than generous.

[lonrho] 07/4/2022 12:54

Well having spoken again to HL apparently I can't tell them in advance to accept the exchange I have to wait until they get round to sending out the paperwork.other stockbrokers have sent out paperwork and one that I know of has a deadline date of 14th April.

[cc2014] 07/4/2022 12:10

I just spoke to HL about the conversion. They are aware and some comms will be coming out so that sounds to me like they will be handling it in the usual way.

[spangle93] 07/4/2022 12:01

Thanks for the feedback. I contacted them by mail early doors as I was heading out this morning, and have had this reply

"We are aware of the Enquest offer and shall be writing out shortly confirming the terms of the offer and how you can take part."

Well, if it's anything like VNH, when we were advised by HL in a message in January about a buyback at NAV that took place the previous September, I'll be as pro-active as possible. I've politely suggested they should get their corporate fingers out

Current offer to buy is 101.75p

[wozzitworthit] 07/4/2022 11:27

This is bonkers !

The RNS for this issue states


The initial authorised offeror is Hargreaves Lansdown Asset Management Limited


You'd have thought they would have done their homework before agreeing to be the intial offeror !

As some of you may have read on another board,it's possible to buy the existing 7% PIK Notes and make a small profit (depending on current offer price, but DYOR) as a way of side stepping the IPO


Good for HL clients - assuming they don't decide the exchange is "too complex" !

[verymaryhinge] 07/4/2022 10:48

I’m told they treat the new bond as “complex”; so are not promoting it. You will potentially miss out on 1.5 points of fee and access to a 9pct coupon bond at 100.
Blame their lawyers. I’d phone and complain- but I’d definitely phone to check that you can exchange if you want to. They will take orders for new bonds over the phone too if you insist (but they want a complex instrument form competes) .. so I am told. AJ Bell and ii have no such issues.

[lonrho] 07/4/2022 08:50

Spangle I phoned their corporate action team yesterday, gave them my instructions and told them to confirm them in writing. They didn't seem to have a clue about the offer.

[spangle93] 07/4/2022 08:37

Has anyone been actually able to avail themselves of the opportunity yet?

My bonds are held with Hargreaves Lansdown, which for some time has lived off its reputation as an elite platform rather than performing as one. So far I've not even been made aware of the offer, let alone been offered the change to take part.

TIA

[steve73] 01/4/2022 14:50

If inflation keeps rising like it has been recently even 9% won't be particularly attractive... Sure beats the bank tho'..!!

[grahamg8] 31/3/2022 16:58

The elephant in the room is the $827m High Yield Bond which needs refinancing by October 2023. Cash flow from high oil price is not going to cut it. Original retail coupon 5.5%, then 7% and now 9%. This says ENQ financial position is getting weaker not stronger. They certainly want to tempt us to stay for the journey and are prepared to pay a pretty hefty price to do so.

[laughton] 31/3/2022 12:31

Looks like a bit of a no-brainer to me, at least as far as existing holders are concerned, although maybe not to hold until maturity.

[spangle93] 30/3/2022 10:39

Steve, thanks, I missed the second RNS



EnQuest PLC .. announces today an invitation (the "ExchangeOffer") to holders of the £190,534,573 7.00 per cent. Extendable PIK Toggle Notes originally due 15 February 2022, as extended to 15 October 2023, issued by EnQuest PLC (the "ExistingNotes") to exchange their Existing Notes for new Sterling denominated 9.00 per cent. notes due 27 October 2027 etc

Each holder whose Existing Notes are accepted for exchange by the Company will receive on the settlement of the Exchange Offer: (i) £1 in principal amount of Notes for every £1 of Existing Notes validly offered and accepted for exchange by the Company; and (ii) an exchange fee of £0.015 for every £1 in principal amount of Existing Notes exchanged for participating in the Exchange Offer, in addition to any accrued but unpaid interest payable on the Existing Notes, to, but excluding 27 April 2022.

[steve73] 30/3/2022 10:25

...Also holders of the existing RB's can exchange them on a 1-for-1 basis with a 1.5% "bonus" payment..in addition to any interest accrued since the last payment (which I calculate to be 1.36%).

At least that's how I understand it..

[spangle93] 30/3/2022 09:00

New ENQ bond issue



The Notes will bear interest at a fixed rate of 9.00% per annum, payable semi-annually in arrear in two equal instalments of £0.045 per £1 in principal amount of the Notes on 27 April and 27 October in each year, with the first such payment being made on 27 October 2022, and are expected to be redeemed (subject to the Company's right to redeem the Notes prior to maturity in accordance with their terms and conditions) at 100% of their principal value on the maturity date, which is expected to fall on 27 October 2027.

[grahamg8] 29/1/2022 15:03

In reality we should be above par as the interest is in the price not accumulated in a separate pot. Last divi 15/8/21 so we have 3.2p dividend in the price which surely will be paid as cash on 15/2/22. Brent is way above the trigger price for a cash payment. So if you sell today at 98.1p you are effectively only getting 94.9p. Keep till 15/2 at the very least. However there is going to be a price at which it would make sense to sell and move to a more profitable home. Meanwhile 20 months of pretty much guaranteed 7% return will keep me in for the time being.

[spangle93] 13/1/2022 16:32

It will be a shame to see it close!