Kistos taps bond market for $50M to fund acquisition drive
What's the deal? Kistos HoldingsDealroom has a profile for this one. Try Dealroom → has placed a $50 million tap issue of its existing 9.875% senior secured bonds, raising the total outstanding to $350 million. The London-listed energy company priced the deal at 101.10% of par, equivalent to a 9.5% yield, with settlement expected around November 6.
Why now? The raise follows an acquisition push. Kistos completed its Oman Blocks 3 and 4 purchase in September, expects to close Block 9, and recently agreed to buy additional Norwegian interests for $12.9 million.
What's the endgame? Net proceeds will fund general corporate purposes, principally continued group growth. On settlement, Kistos expects to hold between $250 million and $300 million in liquidity, backed by cash flows from its unhedged production portfolio.
The numbers: Kistos reported about $280 million in pro forma EBITDA for the nine months ended September 30, 2026. But adjusted net debt had climbed to $101 million by September, lifted by acquisition and capital spending.
Executive chairman Andrew Austin subscribed for $1.5 million of the tap himself. "Pricing this tap at a premium to par is a strong endorsement from credit investors of Kistos' diversified, cash-generative platform," he said.
What could go wrong? The tap adds funding at a substantial cost: the 9.5% yield sits below the existing coupon, but still increases leverage. Its payoff depends on whether the new assets generate enough cash to justify the financing cost.
The signal: This is a quick re-raise, with Kistos returning to the bond market soon after building its $300 million base to bankroll an M&A-led expansion. The pricing at a premium suggests credit investors remain willing to back the strategy — for now.
Read more: investegate.co.uk
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