Tullow Oil refinances 2025 notes via new $400 million five-year loan

By Marisa Wong

Los Angeles, Nov. 13 – Tullow Oil plc is planning to finance the liability management of its senior notes maturing in March 2025 with proceeds from a new facility agreement.

Tullow Oil entered into a $400 million five-year notes facility with Glencore Energy UK Ltd., according to a press release.

The notes facility is guaranteed on a pari passu basis by the same guarantors as Tullow’s senior notes maturing in March 2025, with the notes facility guarantees being subordinated to the guarantees of Tullow’s senior secured notes maturing in May 2026.

Chief executive officer Rahul Dhir commented in the press release, “The proceeds from this facility, together with cash on balance sheet and $800 million of free cash flow expected to be generated during 2023 to 2025, will allow us to fully address all outstanding 2025 notes and positions us for a successful refinancing of the 2026 notes.”

Tullow is an independent oil and gas, exploration and production group based in London.

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