Enq 23 �pik Tog Discussion Threads

[hpcg] 29/4/2015 13:37

Your return is slightly less as you will need to pay the interest since the last payment to whomever sells you the bond. It is easier to think of it as adding a penny to the price of the bond, add 2.75p if purchasing the day before the ex date. Make YTM about 8.85% based on an effective purchase price of 83p.

[my retirement fund] 29/4/2015 12:16

Can anyone help please.

I have used this calculator which is giving me a yield to the maturity of 9.087%.



I have used 7 years till feb 2022 and buy price of 82p

Can anyone tell me if this is the correct calculation or would I need to take into account the coupon payments over the period and that they are paid bi annually ?

[leesson] 28/4/2015 00:44

Are any of you invested in the company?
What are your views on it
Thanks in advance

[spangle93] 22/4/2015 10:11

Hi Enviro - I just checked, and under FAQ it states

Q. Does Hargreaves Lansdown charge for administering corporate actions?
A. No, it is free to participate in corporate actions through Hargreaves Lansdown.

This must be one of the things they've rowed back on since initially introducing charges after RDR, cos I've certainly been charged in the last year

[badtime] 22/4/2015 10:05

Enviro i nearly bought the ords at 36 recently..finger poised on the button...but no.

[envirovision] 22/4/2015 10:04

I changed from Hargreaves myself several years ago to aj bell because their dealing charges were to high and there was a large annual charge.

AJ bell have introduced an annual charge now, it seems we are being squeezed every which way

[spangle93] 22/4/2015 09:32

Envirovision - I had to check with Hargreaves-Lansdown first that they wouldn't charge for a corporate action - otherwise, since I hold fewer than you, I would have got back less than they would have charged for executing my wish! :-(

[envirovision] 22/4/2015 09:13

hpcg, the new king of saudi has already appointed lots of new ministers and the old oil minister will be very replaced soon. Saudi is in a unique position to eek out its reserves for several generations and has a vast war chest of foreign reserves. At heart these people are ultra conservative, their cultures have created dubai for example on the back of the premise oil reserves may dwindle.

Meanwhile other nations are piling on the pressure for opec to cut production.

Its just a matter of time. For example this week:

I disagree regards the .2% bonus, for the sake of logging into my ag bell sip and ticking a box I am £45 richer !

I am pleased I have a significant enq1 holding however I think I will regret not having the gumption or rather the kind of gung ho attitude required to have taken the equity as well.

[hpcg] 21/4/2015 20:12

Agreed, but I don't see that happening either for the very reason the Saudis outlined when they didn't last Autumn; someone else will fill the void.

[envirovision] 21/4/2015 18:47

I would not count opec reducing output at one of their scheduled 2015 shindigs "A Macro Event" myself.

[hpcg] 21/4/2015 17:10

I had sold just before the RNS - when I calculated the 0.2% bonus I didn't regret the decision!

I think it is a bit touch and go for ENQ and a lot of the North Sea. I can't see much in the way of production drops any time soon and that will cap Brent even after the next dip heading this way. It would need a sustained macro event for oil prices to rise to a position where ENQ could face up local troubles of its own should they occur, and if that happens the equity is better leveraged.

p.s. To be clear I certainly don't own the equity.

[envirovision] 21/4/2015 16:20

NB: Its worth voting for this as you'll receive a 0.2% bonus just for responding !

[envirovision] 20/4/2015 19:59

ENQUEST PLC LAUNCHES CONSENT SOLICITATION IN RESPECT OF ITS
£155,000,000 5.50 PER CENT. NOTES DUE 2022

NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS (AS SUCH TERM IS DEFINED IN REGULATION S UNDER THE U.S. SECURITIES ACT OF 1933 AS AMENDED) OR IN OR INTO THE UNITED STATES (INCLUDING ITS TERRITORIES AND POSSESSIONS, ANY STATE OF THE UNITED STATES AND THE DISTRICT OF COLUMBIA) OR ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO DISTRIBUTE THE CONSENT SOLICITATION MEMORANDUM (AS DEFINED BELOW).

10 April 2015

EnQuest PLC (the "Company") today announces that it is inviting holders ("Noteholders") of its outstanding £155,000,000 5.50 per cent. Notes due 15 February 2022 (the "Notes") (ISIN: XS0880578728, Common Code: 088057872) issued pursuant to its £500,000,000 Euro Medium Term Note Programme to consent to certain modifications to the terms and conditions of the Notes (the "Conditions") and the trust deed dated 24 January 2013 as amended and supplemented from time to time (the "Trust Deed") between the Company and U.S. Bank Trustees Limited (the "Trustee") constituting the Notes (such invitation, the "Consent Solicitation"), as described briefly below and in more detail in a consent solicitation memorandum dated 10 April 2015 (the "Consent Solicitation Memorandum").

The proposals that the Company is inviting Noteholders to approve will, if approved and implemented, modify the Conditions and the Trust Deed (by the execution of a supplemental deed to the Trust Deed (the "Supplemental Trust Deed")) as follows (together, the "Proposals"):

(a) to amend the financial covenants such that, in respect of any Reference Date falling during a limited period from the date on which the Supplemental Trust Deed is duly executed to (and including) 31 December 2016 (the "Covenant Amendment End Date"):

(i) the Leverage Ratio shall be less than 5.0:1.0 (currently 3.0:1.0); and

(ii) the ratio of EBITDA to Finance Charges shall be not less than 3.0:1.0 (currently 4.0:1.0),

after which time such financial covenants will revert to the current levels, which shall remain in effect until the date on which the Supplemental Trust Deed shall have been duly executed; and

(b) to amend the Rate of Interest for a limited period of time such that if the Company delivers to the Trustee a compliance certificate in respect of any Reference Date occurring after the date on which the Supplemental Trust Deed is duly executed to (and including) the Covenant Amendment End Date certifying that the Leverage Ratio was more than 3.0:1.0, the Rate of Interest for the immediate next following Interest Period commencing after the date of such compliance certificate shall be 7.00 per cent. per annum.

The Proposals seek to bring the financial covenant levels in the Notes into line with the amended covenants in the Company's secured revolving credit facility, as announced by the Company on 23 January 2015. The financial covenants in the Notes would revert to their current levels from (and including) the Reference Date on 30 June 2017.

The Proposals include all consequential amendments necessary to implement the above modifications.

In connection with the Consent Solicitation, the Company's CEO Amjad Bseisu said:

"This is a prudent and precautionary step to provide us with the flexibility to complete the capital expenditure programme that will significantly enhance the Group's production and cash flow. This brings the Leverage Ratio in the Notes in line with our revolving credit facility whilst offering Noteholders a coupon of 7.00 per cent. if the Leverage Ratio is three times or above. We consider the Proposals to be fair for Noteholders and are encouraged by initial indicative support from Noteholders representing approximately 42 per cent. in aggregate principal amount of the outstanding Notes."

The Consent Solicitation is made on the terms and subject to the conditions contained in the Consent Solicitation Memorandum and should be read in conjunction with such Consent Solicitation Memorandum. Capitalised terms used but not otherwise defined in this announcement shall have the meaning given to them in the Consent Solicitation Memorandum.

An indicative timetable for the Consent Solicitation is set out below and in the Consent Solicitation Memorandum.

RATIONALE FOR THE PROPOSALS

While the Company believes that it will be able to operate within the limits imposed by the Group's borrowings (including the financial covenants under the Notes which the Company proposes to modify by the Consent Solicitation), further sustained falls in the oil price or other adverse developments would reduce headroom and could impact the Group's ability to implement its capital expenditure programme. Therefore, as a prudent and precautionary measure, the Company is seeking an amendment to the Notes to bring the financial covenant levels in the Notes into line with the amended covenants in the Company's secured revolving credit facility, as announced on 23 January 2015. The financial covenants in the Notes would revert to their current levels from (and including) the Reference Date on 30 June 2017.

Continued compliance with all of the covenants imposed by the Group's borrowings remains a priority for the current financial year and beyond. As such, the Proposals would provide the Group with continued flexibility of funding to implement its capital expenditure programme.

SUPPORT OF CERTAIN NOTEHOLDERS

The Proposals have been considered by a number of significant holders of Notes approached by the Company on a confidential basis. Based on feedback from such Noteholders, the Company has received indicative support for the Proposals from Noteholders representing approximately 42 per cent. in aggregate principal amount of the outstanding Notes.

CONSENT FEE

Noteholders who vote in favour of the Extraordinary Resolution by delivering or procuring the delivery of a Consent Instruction (which is not validly revoked) will be eligible to receive a Consent Fee of 0.20 per cent. of the aggregate principal amount of Notes which are the subject of such Consent Instruction. In order to be eligible to receive such Consent Fee, the Tabulation Agent must receive such Consent Instruction by the Voting Deadline.

The Consent Fee will be payable in one instalment on the Consent Fee Payment Date only if the Extraordinary Resolution in respect of the Proposals has been approved and the Supplemental Trust Deed has been duly executed.

MEETING OF NOTEHOLDERS

Notice (the "Notice") of a meeting (the "Meeting") of the Noteholders to be held at the offices of Ashurst LLP at Broadwalk House, 5 Appold Street, London EC2A 2HA, United Kingdom at 10.00 a.m. (London time) on 5 May 2015 has been published in accordance with the Trust Deed.

At the Meeting, Noteholders will be asked to consider and, if thought fit, pass an extraordinary resolution as set out in the Notice (the "Extraordinary Resolution"), which will provide, among other things, for the Trustee to be authorised and requested to concur in and execute the Supplemental Trust Deed, which will implement the Proposals and effect the modifications to the Conditions and Trust Deed outlined in the Consent Solicitation Memorandum.

If the Extraordinary Resolution is passed, the proposed modifications to the Conditions and the Trust Deed will be binding on all Noteholders, including those Noteholders who do not vote in respect of, or vote against, the Proposals.

[hpcg] 08/4/2015 17:11

Surprise move given Brent and sweet light price moves on US stock build. I'm not complaining!

[envirovision] 08/4/2015 15:37

Will this return to par?

[badtime] 20/3/2015 15:47

Thanks chaps ..I had toyed with them yesterday at 36p but I was in a cautious mood

[envirovision] 20/3/2015 15:34

I would fancy the ords if I saw some increase in consumption. Of course opec could cut in the summer and we've missed the opportunity of a life time.Howeve if it goes the other way I would prefer a shot at becoming an owner of the assets by simply holding the bonds.

[hpcg] 20/3/2015 15:14

No, not for me. I was short until budget day morning, which worked out well. At this time I don't see where the oil price rise is coming from. Any sign that the Iranian oil hits western markets and I'm out of these like a shot.

This is not to say the ords aren't a good trade. Retail investors are a bit blind to commodity price gearing and the consequent swings in NPV. Not to mention X production + X oil price = rolling in money forgetting that oil fields require constant development and hence cost.

In their favour ENQ have a very good operational record, which I put down to their PFC roots. Probably better than PFC itself at the moment for that matter.

[badtime] 20/3/2015 14:45

Either of u 2 fancy the ords

[hpcg] 20/3/2015 13:41

Yes - but the risk here whether we get paid back. Obviously buying at 70% or effectively lower some slack is built in, but if debt cannot be covered then it means that tax losses haven't been covered either. One could argue that with bonds priced as they are E should currently be zero. Even if E now twice as valuable after the tax change (exaggerated to make a point) that still makes E = 0.

[envirovision] 20/3/2015 12:29

If the E is more valuable then more importantly the D certainly is too :)

[hpcg] 20/3/2015 12:00

Yes - and I bought back in yesterday. Slightly smaller amount and I lost a penny on the trade plus a few days interest. It was more the results than the tax change which did it for me. They seem to know what they are doing with respect to hedging and cost control.
The tax change has a tertiary benefit that if there has to be D4E in the future that E is more valuable.

[envirovision] 20/3/2015 11:38

All income helps the company hpg, surely?

[hpcg] 19/3/2015 11:51

Tax rate doesn't help the bonds though does it? As the debt is invested it is in the tax loss pot. Get to tax loss zero and by definition the money to repay the bonds has been recovered.