Energy and chemicals multinational Sasol has announced that its wholly owned subsidiary Sasol Financing USA (the issuer) has priced an offering of $1-billion of dollar-denominated notes due 2029.
The notes will bear interest at a rate of 8.750% a year and will be general unsecured obligations of the issuer and will be fully and unconditionally guaranteed by Sasol.
The order book peaked above $2.3-billion, which represents an oversubscription of more than 2.3 times. The offering is expected to close on May 3, subject to closing conditions, the company said.
The proceeds of the offering will be used for repayment of existing indebtedness and general corporate purposes.
“This successful placement is another important step in proactively managing our balance sheet and maintaining a strong liquidity position. As a result of this transaction, we have now fully pre-funded our March 2024 bond maturity, and this follows the recent extension of our dollar loan maturity to 2028,” said Sasol CFO Hanré Rossouw.