Fitch Ratings has withdrawn Nigeria-based Seven Energy International Limited’s (Seven Energy) Long-Term Issuer Default Rating of ‘RD’ (Restricted Default) and Seven Energy Finance Limited’s USD300 million face value 10.25% senior secured notes due 2021 of ‘C’ with a ‘RR6’ Recovery Rating.
KEY RATING DRIVERS
Fitch is withdrawing the ratings of Seven Energy as the company has chosen to stop 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.
On 15 November 2017 Seven Energy announced that Savannah Petroleum PLC (Savannah) will acquire substantially all of the valuable assets of Seven Energy. 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 USD52.5 million in newly-issued Savannah equity and a USD87.5 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.