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Quick Google search seems to suggest that it would be 5% for the facility and 10% on top of that for drawn amounts. Certainly so if it was from a bank. Glencor did get a sweetner with the oil marketing, so be interesting to know if it is only on drawn amounts. Rahul must be up to something if it is 5% on the facility. Don't think he would just pay another 5% till 2025 for the hell of it. I wouldn't be surprised if we get another RNS soon or something with the update on Wednesday.......hmmmmmm
Hmmmmm...Good question. The way the RNS is worded it could be read SOFR on the facility and an extra 10% on drawn amounts or SOFR plus 10% on drawn amounts. I assumed interest was only on drawn amounts as there is no comma before the plus in the last sentence below. However now am unsure.
"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."
POWER .... So if you have no faith then sell. If you can't sell as you're so far underwater you can't see daylight then I'd advise you not to post negativity, especially on days when we get one of the best RNS's for quite some time. Sentiment is everything and your negativity doesn't help your cause in the slightest.
Andoman .... it is not the type of loan that you're assuming. It is a credit facility ... bit like a credit card I guess. Has a penalty interest rate and you only use it when you have no other choice. My assumption is Rahul has put it in place so that the company won't default on the 2025 notes even if the oil price tanks and that puts them in a stronger negotiating position. If all goes according to plan it won't be used. I'm pretty sure they already have a £600m credit facility that they've had for years and not used as yet too.
POWER isn't a glass half full kinda guy/girl/they/it ..... they're more my glass is empty and exploded in my face kinda guy/girl/they/it.
Reality is they're probably just short ..... no way you can be so negative and still keep holding a share. You'd have to be just plain stupid to do so.
Scrodingerscat .... "Also 10% I'm sorry but considering our current credit rating and current base rates, 10% is as good as we can get"
The RNS states "The interest on the facility will be Term Secured Overnight Financing Rate (SOFR) plus 10% on drawn amounts."
I believe this puts the interest rate at just over 15% (probably why we're only up circa 10%), as unless I'm mistaken the overnight rate is currently just over 5%. I think this is just finance that will only be used if absolutely necessary, as interest is only paid on what is drawn as seakingalpha has alluded too. Bit like bridging finance when you build a property and I guess will be like an insurance policy to ensure bonds can be paid in 2025 should oil drop significantly before then and free cash flow is reduced. As Rahul stated ..... "Debt is no longer an issue" and at least now he can negotiate financing, Kenya, deals, etc. without a knife held against his throat.
Fewdollarsmore ... "a little bit worried with comments posted about tomorrows update."
I wouldn't worry about that, especially given the fact those posting the negative comments don't even know that the update is on Wednesday and not tomorrow.
https://www.tullowoil.com/investors/events/
POWER .... I'm struggling to believe you're a long term holder. Jubilee production is up 50% since May and we've just had the best RNS we've seen in quite some time, however just doesn't seem good enough for you as usual. Rahul had nothing to do with the decline in share price from £14 all the way down to 7p. However, he has a lot to do with stabilizing Tullow since then and turning things around in a difficult environment. Rahul was appointed in 2020 and put a 5 year plan in place .... seems to be going very well so far I'd say. We're only half way there and things looking very promising.
I think it's fantastic news ..... shows there are ways around the global bond market issues and the fact that Rahul has been able to do a deal with a big name company is extremely positive. If you are short you'll be having a crisis meeting this morning to decide what to do .....think our very our vocal red day friends are going to be a bit quite this week.
Https://www.africaintelligence.com/west-africa/2023/11/10/foxtrot-and-tullow-oil-hone-their-drilling-plans,110086287-art
Unfortunately behind a paywall so can't read it, however looks like something may be about to happen in the Ivory Coast.
exactly stanleypro.....i lost faith and sold. you might of noticed that i didn't suddenly start ****ging the share off when i sold. just took it on the chin and bought in again when i regained my faith.
and what's the point of quoting production from 4 months ago when it was recently updated at the hy results presentation. that my friend is history. production now at 65k .... you heard it from the man himself....well not you as you're 4 months behind.....rest of us yes.
Well it's my assumption based on what is currently being produced and what Tullow and Kosmos have updated recently. What is your low 50's for 2023 based on.....nothing.
Just can't understand why people hold shares they have no faith in. If you're sitting on a big loss that is the way it goes and like it or not, you have to accept and come to terms with it. End of the day no amount of whinging will make it better and you are responsible for your actions and no one else. If you do ever hope to recover your losses constant negativity on here is not helping your cause. So hold and be positive or sell and then buy something else you have faith in.
StanleyPro....I think you're twisting the facts. Why don't you go watch the HY results presentation where Rahul states they are currently producing 65kbopd. Yes, the average is less than that for 2023, however it won't be for 2024.
I ramp a lot, however even I know there's not a lot the can do. I mean with the debt pile and what assets he has....please explain how you get to the magic 90k figure.
On another note......I see all the usual suspects are out in force again today..... doesn't take much of a drop these days.
POWER ... a serious question. You keep banging on about Rahul, however never say what could be done differently. What exactly is he or anyone else who inherited the mess that was Tullow Oil supposed to do? Uganda was sold, the debt was there when he arrived and Ghana production was already in decline. Surely a 50% increase in production in Jubilee and an arrest of the decline in TEN are major achievements. The fact that no one wants to buy Tullow share's or interest rates have rocketed is not really his fault.