Fitch the global rating agency based in New York on Thursday the 23rd November 2017, has withdrawn the Nigerian based Seven Energy International Limited’s Long Term Issuer Default Rating of RD (Restricted Default) and Seven Energy Finance Limited’s $300m face value 10.25% senior secured notes due 2021 of ‘C’ with a ‘RR6’ Recovery Rating. Amee Attri, Principal Analyst in a statement said “Fitch is withdrawing the ratings of Seven Energy as the company has chosen to stop participating in the rating process. Therefore, Fitch will no longer have sufficient information to maintain the ratings. Accordingly, Fitch will no longer provide ratings or analytical coverage for Seven Energy.”
In a statement on the 14th of November 2017, “Seven Energy announced that Savannah Petroleum will acquire substantially all of the valuable assets of Seven Energy. These assets are to be transferred to Savannah subject to completion of a financial restructuring of Seven Energy. According to the announcement, Seven Energy’s noteholders will receive their pro rata share of USD52.5 million in newly-issued Savannah equity and an USD87.5 million cash payment, to discharge all notes and release of claims against the entities being acquired by Savannah.”
Seven Energy once had the vision of building the largest domestic gas infrastructure network around Nigeria to support the distribution of gas across terminals, households and power plants to power the needs of Africa’s largest economy, that is home to 196 trillion cubic feet of natural gas, the fourth last deposits of natural gas in the world.