New Kistos acquisition, Tulip Oil Netherlands (TON), has taken steps to target its short-term debt.
Kistos, the new vehicle of former RockRose Energy boss Andrew Austin, announced last month that it would acquire TON from its namesake parent firm Tulip Oil.
The company has announced that “binding commitments” have been reached for a new bond for TON Offshore, a subsidiary, worth 90million Euros (£78.2m), to help pay off its existing debt.
The new bond matures in November 2024.
Proceeds will go towards repayment of all outstanding amounts owed under TON Offsore’s existing bonds of 87m Euros (£75.6m), which is mandatory upon completion of Kistos’ acquisition.
In addition, TON Offshore will issue its former parent company, Tulip, with 60m Euros (£52.1m) of its own bonds, which mature in May 2026.
Closing of both these bonds will take place in the week of 17 May, Kistos said.
Kistos also confirmed it has raised £52.5m through the issue of 33.87 million new shares at 155 pence each.
The acquisition, announced last month, was for an initial £190m.
TON Offshore owns an operating interest in the Q10-A gas field and interests in several Dutch North Sea discoveries.
The field is served by a solar and wind-powered normally unmanned installation with emissions significantly below the North Sea average.
Wind and solar will also play a part in the future development of the assets.