ENQUEST BOND ENQ1

1235

Comments

  • And now, finally, showing up on my iDealing account.
  • Still waiting for Selftrade to allocate a value! The allocation has been there for ages but with nil-value.
  • Selftrade have this morning converted all my 'additional' units into 'standard' units and added them into my total holding.
  • Likewise with iDealing last week. Does make looking at your portfolio a mite more confusing though!
  • I'm sure all holders have been keeping track, but in case not, Kraken started delivering oil on Friday. Shares and bonds both up today in response. ENQ1 now looking a lot safer (in my view).
  • Yes, good news for the bond holders, If Brent/WTI can recover then even better. One thing to watch out for is the discount that Kraken heavy oil sells at.
  • PIK bonds due yesterday. Anyone care to hazard a guess as to how long it will take them to appear this time around, bearing in mind that those due in February took almost 3 months?
  • The delay last time was in part due to their close period and restrictions on listing so I'm expecting them to quick off the mark this time.
    At the end of July they said "The Additional Notes will be issued by the Company on 15
    August 2017" and listing as soon as practicable. Fingers crossed.
  • Yes - it will be interesting to see how long " listing as soon as practicable" turns out to be.
  • Remarkably these have shown up today in my Youinvest account. What’s more they’ve been combined with my existing holding as if they are already tradeable. As I’ve not seen them listed by the FCA yet, perhaps for once Youinvest are ahead of the game.
  • Recent issue still not combined with pre-existing holdings in our H-L accounts. Is that what you are all experiencing?
  • Almost immediately i posted my comment on 17/8 YouInvest changed the posting to my account to show these as separate notes!
    Enquest issued an RNS last week saying they will be listed on or about 27 Sept and combined with existing holding. Why it takes six weeks goodness knows.
  • Thanks, beekey, I missed the RNS
  • I am considering the purchase of ENQ1 through Selftrade

    Reading through some of the paperwork when Enquest restructured their debt, in particular where now the coupon 7% ( but as additional bonds when certain conditions aren't met), it mentions that CREST investors should contact their broker to see if this poses any additional conditions etc

    I have asked Selftrade but as it usually takes a while before they answer my queries, is there anyone out there who holds these with Selftrade that can give me an answer please ?




  • I have a holding of Enquest bonds in an ISA with Selftrade and have received additional bonds instead of an interest payment on each of the last two payment dates (although there has been a delay in actually crediting them to my account).
  • I shouldn't read too much into the "delay in crediting" point. I have mine with iDealing and they always take ages to get credited (whereas dividends from other companies get credited on the due day).
  • This will pay interest in cash only if the prevailing oil price for the six-month period prior is at least $65.00/bbl. Indeed we have received additional bonds instead of an interest payment on each of the last two payment dates.
  • This was news from September, but is this nearing it's conclusion? (I don't hold these any more.)

    Analysts at RBC Capital Markets pointed out the company’s net debt to ebitda ratio stood at 3.2 times at the end of the first half and that ratio will have to reach 2.25 times by the end of the year if the company is to meet its December covenant test.
    “We believe the company may come close to breaching this covenant at the end of the year if production at Kraken does not materially improve . . . requiring a further waiver from the banking syndicate,” they wrote in a note.
  • ENQ negotiated a relaxation of the covenants in November - see extract from their operational update issued last week:

    'EnQuest has continued its close dialogue with its lending banks and has proactively sought and agreed additional amendments to its Term Loan and Revolving Credit Facility. These changes include:
    § Deferral of the scheduled $140 million reduction in the Term Loan facility from 1 April 2018 to 1 October 2018
    § An increase in the level of the Leverage Ratio* to March 2019, with the remaining life of the facility set at 1.5 times compared to 1.0 times
    § Reductions in the level of the Finance Charges Ratio* covenant in 2017 and 2018
    These changes provide additional flexibility while Kraken continues its positive production ramp-up trajectory. '
  • .I still haven't taken the plunge on buying any of these bonds - I have shed loads of PMO1 (by my standards) so was re-thinking about Enquest again

    Assuming no problems with their production facilities worldwide, or political upsets, whether they would be hurt badly if the oil price dropped back to the 30USD levels over the next 6 months and stayed there until at least the maturity date on ENQ1

    64K$ question I know but I had to ask !!
  • Woz, they would be bust!, both ENQ and PMO are very leveraged, both these bonds have been restructured. ENQ1 has already had a technical default, both these bonds have had 'near-death' experiences, eg ENQ trading in the high twenties. The share price is still very volatile and fragile.

    http://www.lse.co.uk/ShareChat.asp?ShareTicker=ENQ
  • Paddy

    Cheers - yes have been following PMO1 before and right through re-structuring. I have a better feeling towards them as a company than Enquest which is why I ended up putting more with them then the former.

    My feeling was to wait a few more months, but have cash doing nothing at moemnt so temptation reared its head again

    Thanks (again !)


    Woz
  • Yes, I had that problem once, bought a shed load of ENQ USD bonds @104, after that I had different problems, thankfully due to recovery in Brent and a collapse in sterling I managed a return of 7% pa over my holding period, but I had to prepare myself to lose the entire investment at times. I hold a small amount of the equity out of interest, so I follow it fairly closely, the company is still highly leveraged and is involved in a lot projects, so I would not recommend investing at these levels.
  • Also, FYI, the Futures Curve for Brent is indicating lower prices over the coming years
    see:
    https://www.barchart.com/futures/quotes/CB*0/all-futures
  • Very interesting - thanks for the link

    Woz
  • Anyone sighted ENQ1 coupon yet?

    I think they were due for payment yesterday but, so far, not appeared in my iDealing account.
  • Noting in my AJ Bell Youinvest either, but they are ordinarily very slow at this sort of thing.
  • Kerrching! Just arrived at iDealing.
  • Just paid into Selftrade this morning. By my calculations, and based on purchases I made at the depths as well as my initial investment plus the capitalised bits, I have just received a half yearly payment of a little under 5.5% on my total investment! Not bad for a bond that was issued at 5.5% per annum.
Sign In or Register to comment.