Fitch: Seven Energy notes B-

Fitch Ratings said it assigned a final B- issuer default rating of Seven Energy International Ltd. following successful placements of $400 million in public and private notes.

The outlook is stable.

Fitch also said it assigned a final B- senior secured rating with a RR4 recovery rating to wholly-owned subsidiary Seven Energy Finance Ltd.’s $300 million 10¼% secured notes due 2021.

Seven Energy intends to use the total proceeds to improve its capital structure by redeeming all outstanding convertible bonds due 2014, repaying and cancelling its reserve-based lending facility, working capital facility, accrued interest and other items and general corporate purposes, the agency said.

The stable outlook reflects a view that improvement in Seven Energy’s credit profile would come from the successful implementation of its gas strategy, which is not expected until the end of 2015, Fitch said.

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