Hurricane Energy PLC shares rallied 8% in Friday’s early deals as it confirmed it will repurchase US$77.9mln of convertible debt at a discount to par.
The company is to pay 78p in the pound to buy-back convertible bonds, part of a series that are due in 2022. Some US$152mln of face value bonds will remain following settlement of the company’s tender.
"I am pleased that the company has been able to buy back more than 33% of the outstanding bonds," Antony Maris, Chief Executive Officer said.
“This will reduce the par value of bonds held by third parties to US$152mln, utilising US$62mln of net free cash (inclusive of accrued interest).
“The effect of this will save the company approximately US$22mln of future obligations to bondholders in capital and interest. This is a positive development for the company in managing its outstanding debt."
In London, Hurricane shares gained 8.3% to trade at 2.7p.