Tullow announce Refinancing Transaction with Noteholders and Glencore

20 Feb Tullow announce Refinancing Transaction with Noteholders and Glencore

(Oilandgaspress) – Tullow Oil plc announced that it has entered into a binding Lock-Up Agreement to implement a refinancing transaction with holders of c.66% of its $1,285,245,000 10.25% senior secured notes due May 2026, and the holders thereof, the “Noteholders”) and with Glencore Energy UK Limited (“Glencore”).

Key features of the Refinancing Transaction

· Release of Senior Secured Notes and issuance of new Extended Notes maturing 15 November 2028, together with a paydown of at least $100 million, extending the Company’s debt maturity profile and creating runway to deliver the investment programme and realise asset value.

· Glencore’s existing $400 million secured notes facility released and issuance of new Glencore Junior Notes maturing 15 May 2030.

· Strengthened liquidity position through a new $100 million super senior Cargo Prepayment Facility provided by Glencore, complemented by a reduced all-in cash interest profile through Payment-In-Kind (PIK) only interest on the Glencore Junior Notes.

· Existing equity remains in place and no new shares are anticipated to be issued in connection with the Refinancing Transaction.

· Governance will be enhanced, following the transaction, including appointment of at least three new independent non-executive directors and formation of a dedicated board sub-committee to oversee a disciplined process for value-maximisation from the Company’s asset base.

· Lock-Up Agreement already supported by c.66% of Noteholders and Glencore committing to implement the Refinancing Transaction via a Consent Solicitation if over 90% of Noteholders accede to the Lock-Up Agreement, or an English restructuring plan.

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