By Modupe Gbadeyanka
Renowned rating company, Fitch Ratings has announced withdrawing Nigeria-based Seven Energy International Limited’s (Seven Energy) Long-Term Issuer Default Rating of ‘RD’ (Restricted Default) and Seven Energy Finance Limited’s $300 million face value 10.25 percent senior secured notes due 2021 of ‘C’ with a ‘RR6’ Recovery Rating.
Explaining the rationale behind this development, Fitch noted that it withdrew the ratings because Seven Energy has stopped participating in the rating process.
“Therefore, Fitch will no longer have sufficient information to maintain the ratings. Accordingly, Fitch will no longer provide ratings or analytical coverage for Seven Energy,” a statement issued by the rating agency on Thursday said.
Recall that on November 15, 2017, Seven Energy announced that Savannah Petroleum Plc will acquire substantially all its valuable assets.
These assets are to be transferred to Savannah subject to completion of a financial restructuring of Seven Energy.
According to the announcement, Seven Energy’s noteholders will receive their pro rata share of $52.5 million in newly-issued Savannah equity and an $87.5 million cash payment, to discharge all notes and release of claims against the entities being acquired by Savannah.
The expected closing date for the transaction has not been made public.
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