M&P Secures the Re-Profiling of Its Debt Repayments

  • Improvement of liquidity in a volatile macro environment thanks to lower repayments in 2020 and 2021
  • M&P remains committed to debt reduction, with repayments to start immediately (March 2020)

PARIS--()--Regulatory News:

Etablissements Maurel & Prom (Paris:MAU) (Euronext Paris: MAU, ISIN FR0000051070, “M&P”) announces the signature of amendment agreements (together the “Amendments”) to re-profile the repayment of its two debt facilities, the US$600 million term loan with a syndicate of lenders (the “Term Loan”) and the US$200 million loan (US$100 million drawn and US$100 million undrawn) from M&P’s controlling shareholder PT Pertamina International Eksplorasi Dan Produksi (“PIEP”) (the “Shareholder Loan”).

Under the terms of the Amendments, the scheduled debt repayments for both facilities have been reduced in 2020 and 2021, allowing M&P to maintain ample liquidity and better adapt debt repayments to cash flow generation and investment profile. The amendment to the Shareholder Loan also demonstrates the continued support of PIEP to M&P, as a significant amount of its repayment has now been pushed to 2024, beyond the final maturity date for the Term Loan.

Olivier de Langavant, CEO of M&P, declared: “Securing the Amendments is a healthy measure, which will allow M&P to deliver tangible progress on deleveraging while maintaining a robust cash balance in the current macroeconomic environment. Following the initial two year grace period, M&P is committed to reducing its debt, and the first quarterly instalment of the Term Loan to be repaid in the upcoming days marks a significant milestone. M&P is strongly positioned to face the volatility of current market conditions thanks to its long-life assets and the flexibility offered by the operational control of its key assets”.

As a condition to the amendment to the Term Loan, it has been agreed with the lenders that dividend distribution will be capped at an annual amount of US$15 million for 2021 and 2022. As a reminder, as per the terms of the original Term Loan agreement signed in December 2017, M&P’s dividend distribution is currently limited to an annual amount of US$10 million until year-end 2020.

M&P’s total outstanding debt currently amounts to US$700 million (US$600 million under the Term Loan and US$100 million under the Shareholder Loan). As of end of February 2020, M&P’s cash position stood at $267 million, resulting in a net debt of US$433 million. M&P can also immediately unlock additional liquidity thanks to the undrawn US$100 million tranche of the Shareholder Loan.

Key terms of M&P’s debt facilities:

 

Term Loan

Shareholder Loan

Agreement date

December 2017

December 2017

Amount

US$600 million

US$100 million drawn +

US$100 million undrawn

Interest rate

Libor +1.5%

Libor +1.6%

Repayments

16 quarterly instalments

17 quarterly instalments

First repayment

March 2020

December 2020

Final maturity

December 2023

December 2024

The banks participating in the Term Loan are Bank of Tokyo-Mitsubishi UFJ, Natixis, PT Bank Mandiri, Sumitomo Mitsui Banking, Crédit Agricole, DBS, ING, HSBC and PT Bank Negara Indonesia.

For more information, visit www.maureletprom.fr

This document may contain forward-looking statements regarding the financial position, results, business and industrial strategy of Maurel & Prom. By nature, forward-looking statements contain risks and uncertainties to the extent that they are based on events or circumstances that may or may not happen in the future. These projections are based on assumptions we believe to be reasonable, but which may prove to be incorrect and which depend on a number of risk factors, such as fluctuations in crude oil prices, changes in exchange rates, uncertainties related to the valuation of our oil reserves, actual rates of oil production and the related costs, operational problems, political stability, legislative or regulatory reforms, or even wars, terrorism and sabotage.

Maurel & Prom is listed for trading on Euronext Paris
CAC All-Share – CAC Oil & Gas – Next 150 - PEA-PME and SRD eligible
Isin FR0000051070 / Bloomberg MAU.FP / Reuters MAUP.PA

Contacts

Maurel & Prom
Press, shareholder and investor relations
Tel: +33 (0)1 53 83 16 45
ir@maureletprom.fr

NewCap
Financial communication and investor relations
Louis-Victor Delouvrier
Tel: +33 (0)1 44 71 98 53
maureletprom@newcap.eu

Media relations
Nicolas Merigeau
Tel: +33 (0)1 44 71 94 98
maureletprom@newcap.eu

Contacts

Maurel & Prom
Press, shareholder and investor relations
Tel: +33 (0)1 53 83 16 45
ir@maureletprom.fr

NewCap
Financial communication and investor relations
Louis-Victor Delouvrier
Tel: +33 (0)1 44 71 98 53
maureletprom@newcap.eu

Media relations
Nicolas Merigeau
Tel: +33 (0)1 44 71 94 98
maureletprom@newcap.eu