Santos has announced it has conducted a debt offering and successfully priced a US$850 million senior unsecured fixed rate bond transaction in the US dollar 144A/RegS market.
The bonds will be issued by Santos Finance Limited, a wholly owned subsidiary of Santos Limited and guaranteed by Santos Limited.
The proceeds are intended to be used for general corporate purposes.
The bonds have been priced at a fixed coupon of 6.875 per cent for a period of 10 years, maturing in September 2033.
Santos managing director and chief executive officer Kevin Gallagher said this transaction is an excellent result for Santos. “This demonstrates continuing strong support from the capital markets and ensures our balance sheet is well positioned to deliver on our strategy,” Mr Gallagher said.
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Settlement of the bonds is expected to occur on 19 September 2023, New York time, and is subject to customary closing conditions.
The Australian Financial Review had earlier reported that four banks – Citi, Deutsche Bank, Mizuho and RBC had been mandated for the bond primarily targeting investors in the USA. It cited management telling investors funds would be mainly used for growth capex in the next two years including for the $5.8 billion Barossa gas project in the Timor Sea.
