Santos Ltd (ASX: STO) shareholders are happy with what the company announced regarding its balance sheet this morning.
Santos is one of Australia’s largest oil and gas companies. Founded in the 1950’s, Santos owns and operates one of Australia’s largest portfolios of oil and gas fields, connected by extensive pipelines and complementary facilities.
Santos Balance Sheet
Santos announced that it has priced a US$600 million senior unsecured fixed rate bond transaction in the US$ Regulation S market.
The resource company is raising this US$600 million of debt to refinance the US$500 million bridge facility that was partly used to fund the Quadrant Energy acquisition.
The bond has been priced at 5.25% for a 10-year term. It was popular with investors with the ‘book’ approximately five times oversubscribed.
Santos Managing Director Kevin Kallagher commented, “This is an excellent result for Santos, showing strong support from the capital markets and demonstrating our balance sheet is set up to support our growth strategy.”
Whilst this is good news for Santos, I tend to avoid commodity businesses. I would prefer to go for solid ASX shares like the ones in the free report below.
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