Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers T > Headlines for Tullow Oil plc > News item |
Moody's assigns Tullow notes B3
Moody's Investors Service said it assigned and placed under review for upgrade a B3 senior secured rating to Tullow Oil plc's proposed $1.8 billion of senior secured notes due in 2026.
The agency also placed under review for upgrade Tullow’s Caa1 corporate family rating and Caa1-PD probability of default rating, following the announcement of the launch of the senior notes and of Tullow refinancing its debt. The Caa2 senior unsecured rating of the senior unsecured notes due in 2022 and 2025 remains unchanged at Caa2.
The proceeds, together with $630 million of cash available, will be used to repay $1.43 billion of outstanding reserve-based lending borrowings, $300 million of convertible notes due in July 2021 and $650 million of unsecured notes due in April 2022.
“The review will focus on (i) the successful completion of the envisaged refinancing of Tullow Oil and (ii) the completion of hedges of 75% of the production for the next two years and 50% for the third year, at a floor price which Moody's considers to be sufficient to protect Tullow's balance sheet in a low oil price scenario, identified at approximately $55/bbl,” the agency said in a press release.
Before the review Tullow’s outlook was negative.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.