South Africa-based energy and chemicals company,
) recently announced that it will be offering 4.50% unsecured
notes of $1.0 billion, due in 2022. The notes will be issued by
Sasol's subsidiary - Sasol Financing International Plc. This is
the company's first US$ Notes offering.
SASOL LTD -ADR (SSL): Free Stock Analysis
TALISMAN ENERGY (TLM): Free Stock Analysis
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It is estimated that net returns from the issue will be around
$985 million after discounts and expenses. Sasol will be using
the proceeds from the offering for general corporate purposes and
Sasol expects the proceedings to be complete on November 14,
2012, subject to the fulfillment of customary closing conditions.
As of June 30, 2012, Sasol generated R47.9 billion in operating
cash flows and spent R29.2 billion in capital expenditure.
We also expect interest expenses to increase with the sale of the
South Africa-based Sasol is an integrated energy and chemicals
company. It is the leading provider of liquid fuels and a major
international producer of chemicals. The group divides its
operations in these segments: South African Energy Cluster,
International Energy Cluster and Chemical Cluster.
We believe that Sasol's deleveraged balance sheet and strong cash
position keeps the group well equipped to weather the global
economic storm and fund its growth program in tough credit
However, we believe that the company conducts operations in many
countries and is exposed to risks associated with doing business
abroad. Such risks include embargoes and/or expropriation of
assets, exchange rate risks, terrorism and political/civil
sentiment and others.
Sasol - which has collaborated with Canadian energy explorer
Talisman Energy Inc.
) in the latter's gas-rich Montney shale holdings in northeastern
British Columbia - currently holds a Zacks #4 Rank (short-term