REG - Tullow Oil PLC - Tullow secures $400 million 5-year debt facility

Tullow OilAnnouncement

13/11/2023 07:00

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RNS Number : 1627T  Tullow Oil PLC  13 November 2023

Tullow secures $400 million five-year debt facility

13 November 2023 - Tullow Oil plc (Tullow) is pleased to announce that it has
entered into a $400 million five-year notes facility agreement with Glencore
Energy UK Limited (Glencore).

The facility will be available to draw for 18 months and proceeds will be used
for liability management of Tullow's senior notes maturing in March 2025. The
interest on the facility will be Term Secured Overnight Financing Rate (SOFR)
plus 10% on drawn amounts.

Tullow is also pleased to announce that it has entered into oil marketing and
offtake contracts with Glencore for Tullow's crude oil entitlements from the
Jubilee and TEN fields in Ghana and the Rabi Light entitlements in Gabon which
run concurrently with the notes facility agreement.

Rahul Dhir, Chief Executive Officer, Tullow, commented today:

"Glencore's $400 million facility commitment is a strong endorsement of our
business plan and strategy. Today's announcement demonstrates our ability to
access long term capital from a variety of sources and this facility is a
material step in our refinancing strategy, following the successful and equity
accretive tender offer in June. 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."

Commenting on the transaction, Alex Sanna, CEO of the Oil & Gas Division
of Glencore, said:

"We are pleased to complete this landmark $400 million notes facility for
Tullow, along with the term oil marketing and offtake contracts from Tullow's
production in Ghana and Gabon. This facility is a strong endorsement of
Tullow's business plan and strategy, and demonstrates Glencore's capability in
structuring finance solutions across the oil and gas sector."

Additional information

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 ("2026 Notes"). In addition, the notes facility is
secured by the same collateral as the 2026 Notes but ranks contractually
behind the 2026 Notes with respect to the right to receive proceeds from any
enforcement of collateral.

 CONTACTS
 Tullow Investor Relations                         Camarco (Media)

                                                 (+44 20 3781 9244)
 ir@tullowoil.com (mailto:ir@tullowoil.com)

                                                 Billy Clegg
 Nicola Rogers

 Matthew Evans                                     Andrew Turner

                                                   Rebecca Waterworth

 

This announcement contains inside information for the purposes of Article 7 of
Regulation 2014/596/EU which is part of domestic UK law pursuant to the Market
Abuse (Amendment) (EU Exit) Regulations (SI 2019/310) ("UK MAR"). Upon the
publication of this announcement, this inside information (as defined in UK
MAR) is now considered to be in the public domain. This announcement is being
made on behalf of Tullow by Adam Holland, Company Secretary.

Notes to editors 

Tullow is an independent oil & gas, exploration and production group,
quoted on the London and Ghanaian stock exchanges (symbol: TLW). The Group has
interests in over 30 licences across eight countries. In March 2021, Tullow
committed to becoming Net Zero on its Scope 1 and 2 emissions by 2030. For
further information, please refer to our website at www.tullowoil.com
(http://www.tullowoil.com/) . 

 

Follow Tullow on: 

Twitter: www.twitter.com/TullowOilplc (http://www.twitter.com/TullowOilplc)
 

YouTube: www.youtube.com/TullowOilplc (http://www.youtube.com/TullowOilplc)
 

Facebook: www.facebook.com/TullowOilplc (http://www.facebook.com/TullowOilplc)
 

LinkedIn: www.linkedin.com/company/Tullow-Oil
(http://www.linkedin.com/company/Tullow-Oil)  

 

 

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