Singapore-based oil company Puma Energy announced on Tuesday that it will be launching a rights issue of $1.1bn with proceeds to be used to repay a 2018 term loan facility. Puma, 55.6% owned by trading house Trafigura, is in the process of restructuring and selling assets after reporting a Q3 loss of $250mn and prior to that, a $753mn loss for 2019. While Trafigura has indicated its interest in subscribing to the rights issue, Sonangol, Angola’s state oil producer said it will not participate and is in the process of selling its 31.5% stake. In mid-December last year, Fitch had placed its BB- rating on Puma on Rating Watch Negative citing increased refinancing risk and weaker liquidity position. The action by the rating agency came after Puma pulled a proposed 5NC2 dollar bond in October on the back of difficult pricing conditions.
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