Nostrum Oil & Gas Completes $304.6M Kazakhstan Sale and Clears Secured Debt
Nostrum Oil & Gas PLC (LSE:NOG) has finalized the sale of its operating businesses in Kazakhstan to Altaris Holding Ltd. for $304.6 million, ending nearly three decades of operations in the country. The transaction includes the transfer of participating interests in Zhaikmunai LLP and POSITIV Invest LLP, with $10.0 million placed in escrow to cover potential warranty claims.
The asset sale enables the energy group to significantly reduce its debt obligations. Nostrum used the proceeds to fully redeem its Senior Secured Notes due 2026, leaving no secured debt outstanding. In addition, the company plans to purchase $417.5 million of its Senior Unsecured Notes, leaving $100.0 million in principal maturing in December 2028 at zero interest.
Having completed the disposal of its primary operating assets, Nostrum will now proceed with an orderly managed wind-down of its remaining assets and liabilities. Investors will be watching for an upcoming announcement detailing the final cash pricing and timing for the unsecured note repurchase.
Key points
- Nostrum Oil & Gas PLC (LSE:NOG) completed the sale of its Kazakhstan operations to Altaris Holding Ltd. for $304.6 million.
- The company redeemed its Senior Secured Notes due 2026 in full, eliminating all outstanding secured debt.
- Nostrum will purchase $417.5 million of Senior Unsecured Notes, leaving $100 million maturing in December 2028 with zero interest.
- A sum of $10 million from the transaction proceeds has been placed in escrow for at least six months for potential warranty claims.
- Following the completion of the sale, Nostrum is initiating an orderly managed wind-down of its remaining business and assets.
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How we writeDisclaimerQuestions and answers
Why did Nostrum Oil & Gas sell its Kazakhstan operations?
Nostrum Oil & Gas sold its Kazakhstan assets to clear its senior secured debt, reduce total liabilities, and proceed with an orderly wind-down of the company.
What is happening to Nostrum Oil & Gas debt following the sale?
Nostrum fully paid off its Senior Secured Notes due 2026 and will buy back $417.5 million in Senior Unsecured Notes, leaving $100 million due in late 2028 at 0% interest.
What are the next steps for Nostrum Oil & Gas?
The company will finalize post-completion accounting adjustments, announce exact terms for its unsecured note purchase, and carry out a managed wind-down.