Business News of Friday, 1 December 2017
Tullow Oil plc (Tullow) has announced the completion of the refinancing of US$2.5 billion of Reserves Based Lending (“RBL”) credit facilities.
The US$2.5 billion of credit facilities are split between a commercial bank facility of US$2.4 billion and an IFC facility of US$100 million.
The fully committed facilities are revolving with a three-year grace period and final maturity of November 2024.
The transaction, which was formally launched in early October following the resolution of the Ghana – Cote d’Ivoire border dispute, was materially over-subscribed and extends the maturity of the Group’s existing RBL credit facilities.
Tullow has also decided to reduce the commitments of its Revolving Corporate Credit Facility to US$600 million from US$800 million, ahead of the scheduled amortisation in January 2018.
Following the refinancing of the RBL credit facilities and the reduction of the Revolving Corporate Credit Facility, Tullow has total headroom including free cash of US$0.9 billion with no material near-term debt maturities.
Les Wood, Chief Financial Officer, Tullow Oil plc, said on Wednesday:
“The refinancing of our RBL credit facility was a key objective for 2017 and we are very pleased to have completed this process in line with stated guidance and ahead of our year-end target. The success of this transaction clearly demonstrates the high quality of the Group’s assets, our ability to generate free cash flow and the strength of our long-standing banking relationships. Following this refinancing, we have no material near-term debt maturities and will enter 2018 in a strong financial position.”
Tullow Oil plc
Tullow is a leading independent oil & gas, exploration and production group, quoted on the London, Irish and Ghanaian stock exchanges (symbol: TLW).
The Group has interests in over 80 exploration and production licences across 16 countries which are managed as three business delivery teams: West Africa, East Africa and New Ventures.