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Tullow Oil PLC - Africa and South America-focused oil and gas exploration company - Announces results of its offer to purchase a portion of its outstanding USD800.0 million 7.0% senior notes due 2025. Company increases the tender consideration to USD100 million. The final acceptance amount is USD166.5 million. Company will use around USD100.0 million of cash on its balance sheet to fund the purchase of USD166.5 million. The transaction will deliver value accretion of USD86.3 million.
Chief Executive Richard Miller says: "This transaction, which demonstrates our confidence in the business, is an important step in addressing our debt maturities. We have reduced gross debt by USD266 million this year through this transaction and the annual amortisation of the 2026 Notes, and we have accelerated our deleveraging trajectory. We continue to progress a range of options to address the remainder of the 2025 notes, and with the start-up of the Jubilee South East development around mid-year we will generate material free cash flow in the second half of the year and beyond."
Current stock price: 27.30 pence, closing 7.5% higher on Monday in London
12-month change: down 46%
By Heather Rydings, Alliance News senior economics reporter
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