Tullow Oil to pay down lending facility, redeem 2022 notes via new debt

By Rebecca Melvin

Concord, N.H., April 29 – Tullow Oil plc plans to repay all amounts outstanding under its existing reserves-based lending facility and to redeem its 6¼% notes due 2022, according to a company release.

The company will use proceeds from an offering of senior secured notes due 2026, along with cash on hand, to fund the paydown and redemption.

The company has also obtained $600 million of commitments under a new super senior revolving facilities agreement maturing in December 2024 that is comprised of a $500 million revolver and a $100 million letter-of-credit facility.

The transactions will extend the debt maturity profile of the company and are expected to be net leverage neutral with the repayment of the existing reserves-based lending facility and the redemption of the 2022 notes.

There is $650 million principal amount outstanding of the 2022 notes, which will be redeemed at par plus interest to the date of redemption.

The company also has $300 million principal amount of 6 5/8% convertible bonds due July 12, 2021, which will be repaid in full at their maturity with proceeds from the new debt.

Proceeds of the new loan and notes will not be used to pay any amounts under the company’s $800 million of 7% senior notes due 2025, the company noted.

Tullow is a London-based oil and gas exploration and production company with interests in 11 countries including Ghana.

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