Fitch rates Puma notes BB

Fitch Ratings said it assigned an expected senior unsecured rating of BB to Puma International Financing SA's proposed issue of benchmark-size senior notes due in 2026.

The expected rating is in line with the current ratings of the $1 billion 6¾% notes due 2021 and the $600 million 5 1/8% notes due 2024 issued by Puma International Financing SA, respectively, in January 2014 and in October 2017.

Puma International Financing is a Luxembourg-based financial vehicle wholly owned by Puma Energy Holdings Pte. Ltd.

The notes will be unconditionally guaranteed on a senior unsecured basis by Puma Energy and will rank equally in right of payment with all existing and future senior unsecured and unsubordinated obligations of Puma Energy.

The proceeds from the issue are expected to be used to fully redeem Puma International Financing's outstanding 6¾% senior notes due 2021, repay drawn amounts under the group's revolving credit facilities and for general corporate purposes, Fitch said.

The transaction should improve Puma Energy's debt maturity profile, the agency said.

Fitch said it the company's lower capital expenditure partly offsets underperformance and higher working capital requirements attributed to activity ramp-ups in Myanmar and Northern Ireland in the first half of 2017.

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