Tullow Oil gives results of tender offer for 7% notes due 2025, ups cap

By Marisa Wong

Los Angeles, June 20 – Tullow Oil plc announced the results of its June 12 invitation to holders of its $800 million outstanding 7% senior notes due 2025 (ISIN: USG91237AA87) to tender their notes for purchase for cash, up to a total tender consideration of $75 million.

Tullow increased the aggregate tender consideration to $99,999,182.50, according to a Monday press release.

The final acceptance amount, representing the final aggregate principal amount of Regulation S notes accepted for purchase, was $166,537,000.

The maximum purchase price, determined under an unmodified Dutch auction procedure, was set at 65, achieving a weighted average purchase price of 60.05. The weighted average price of tenders not accepted for purchase was 74.64.

The minimum purchase price was 55.50, as previously announced.

The company also offered to pay accrued interest.

The company said it would use about $100 million of cash on balance sheet to fund the purchase of $166.5 million principal amount of notes.

This transaction delivers a value accretion of $86.3 million from a combination of $66.5 million net debt reduction and coupon savings to maturity of $19.8 million, according to Monday’s press release.

As noted before, the company was only accepting tenders with respect to the Regulation S notes of the series. The company did not accept tenders with respect to the Rule 144A notes (ISIN: US899415AE32).

The offer expired at 11 a.m. ET on June 16. Settlement was slated for June 20.

Notes purchased under the offer will be retired and canceled.

The dealer managers for the offer are ING Bank NV, London Branch (+44 20 7767 6784; liability.management@ing.com) and Standard Chartered Bank (+44 20 7885 5739, +65 655 78286, +852 398 38658; liability_management@sc.com).

The information and tender agent is Morrow Sodali Ltd. (+852 2319 4130, +44 20 4513 6933; tullowoil@investor.morrowsodali.com; https://projects.morrowsodali.com/tullowoil).

The London-based oil and gas exploration and production company said it undertook the offer as part of its plan to optimize and proactively manage its cash, debt profile and capital structure.

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