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.
"The company's focus remains on debt reduction," Chief Executive Kevin Gallagher said Friday.
Continue Reading Below
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 email@example.com
(END) Dow Jones Newswires
September 07, 2017 19:26 ET (23:26 GMT)