Santos Prices US$800 Million Bond as it Focuses on Cutting Debt

By Robb M. Stewart Features Dow Jones Newswires

MELBOURNE, Australia--Santos Ltd. (STO.AU) said it remains on track to cut net debt to US$2 billion by the end of 2019 after a US$800 million bond offering received strong support from global asset managers and insurance companies from Asia, Australia and Europe.

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"The company's focus remains on debt reduction," Chief Executive Kevin Gallagher said Friday.

The oil and gas producer priced the 10-year senior fixed-rate bonds with a coupon of 4.125%. The offer book was six times oversubscribed, the company said.

The bonds will replace existing euro hybrid notes and will lead to significant annual interest-cost savings and a further reduction in the company's forecast free cash-flow breakeven oil price, Mr Gallagher said.

Santos's net debt stood at US$2.9 billion at the end of June.

Write to Robb M. Stewart at robb.stewart@wsj.com

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(END) Dow Jones Newswires

September 07, 2017 19:26 ET (23:26 GMT)