Tullow Oil plc has announced the conclusive outcomes of its previously declared tender offer, extending an invitation to holders of its 7% Senior Notes due 2025.
The offer, encompassing a cash purchase by the company, reached an aggregate tender consideration of U.S.$300,000,000, excluding accrued and unpaid interest.
As of the Expiration Deadline on December 14, 2023, a total principal amount of U.S.$140,933,000 in Notes were validly tendered, inclusive of those submitted before the Early Tender Deadline of November 29, 2023.
The Tender Consideration for each U.S.$1,000 principal amount of Notes validly tendered and accepted for purchase stands at U.S.$920. Settlement for the tendered Notes accepted for purchase is scheduled for December 20, 2023.
Holders will additionally receive accrued and unpaid interest on the accepted Notes from the last interest payment date applicable to such Notes up to, but not including, the Final Payment Date.
Richard Miller, Chief Financial Officer, Tullow, commenting on the offer, stated that, “2023 has been a transformative year for our balance sheet. Following the start-up of the Jubilee South East project earlier this year, we are now in a period of material free cash flow, with approximately $800 million expected to be generated between 2023 to 2025.”
“This free cash flow, together with cash on balance sheet and the $400 million notes facility commitment from Glencore, will allow us to fully address all outstanding 2025 Notes and puts us in a strong position to successfully refinance the remaining 2026 Notes. We have reduced gross debt by almost $400 million this year and we remain on track to becoming a low-debt business with a sustainable capital structure,” he added.
Source: norvanreports.com
