Tullow Oil gives final tender results for 2025 notes

By William Gullotti

Buffalo, N.Y., Dec. 15 – Tullow Oil plc announced the final results of its tender offer relating to the $633,463,0000 outstanding 7% senior notes due 2025 (Cusips: G91237AA8, 899415AE3) on Friday, according to a notice.

As previously reported, the company extended an offer to buy up to $300 million of the notes.

As of the offer expiration at 5 p.m. ET on Dec. 14, noteholders tendered $140,933,000 of their notes, a $10,847,000 increase from the amount reported tendered by the early tender deadline on Nov. 29.

As the offer was not oversubscribed, Tullow Oil accepted all tenders without proration.

Pricing was determined through a modified Dutch auction procedure. The minimum purchase price per $1,000 principal amount was $900, and the maximum purchase price was $920.

As previously reported, the early tender offer consideration was set at $920 per $1,000 note, which included a $50 early tender offer premium that was not initially going to be available to tendering noteholders after the early deadline. However, the company amended the offer after the early deadline so that any tendering noteholder would receive the full $920 consideration.

The company will also pay accrued interest to but excluding the applicable payment date.

Settlement remains scheduled to occur Dec. 20.

$492,530,000 of the series will remain outstanding after settlement.

As previously reported, the company intends to fund the aggregate tender consideration with drawings under its $400 million five-year notes facility agreement with Glencore Energy UK Ltd. entered into on Nov. 11. The company plans to pay all accrued interest with cash on hand.

The company said it carried out the tender offer as part of its plan to optimize and proactively manage its cash, debt profile and capital structure.

ING Bank NV, London Branch (+44 20 7767 6784; liability.management@ing.com) and Standard Chartered Bank (212 667-0351, +44 20 7885 5739, +852 398 38658, +65 6557 8286; liability_management@sc.com) are the lead dealer managers. Absa Bank Ltd., DNB Markets, Inc., J.P. Morgan Securities plc, Nedbank Ltd. and Standard Bank of South Africa Ltd. are co-dealer managers.

Morrow Sodali Ltd. (+852 2319 4130, +44 20 4513 6933, 203 658-9457; tullowoil@investor.morrowsodali.com; https://projects.morrowsodali.com/tullowoilSUN) is the information and tender agent.

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

© 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.