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Without any other info all we can look at is the 2022 Bond price (along with SP of course). This has jumped from 90-92 level to 95-96 range since the new bond offer was announced.
So a drop back towards the low 90s in the coming days might be seen as a negative to this completing.
They have provided a write up this morning. It summarises what we already know but below is their last two paragraphs about it. The state this on the assumptions that the bonds will be bought but don't comment on this.
Ample liquidity
=============
In addition to the bond issue, Tullow has received $600m of liquidity
commitments. This comprises a $500m revolving credit facility and a $100m letter
of credit facility. We do not expect Tullow to draw down these facilities and they
provide liquidity headroom over and above the company’s requirements. Overall,
the bond issuance, liquidity commitments and bond and facility redemptions are
leverage neutral for the company
Equity not required
=================
We consider this refinancing to be transformational for the company. Tullow now
has a clear financial runway, with the next debt maturity not taking place until the
$800m senior bond in 2025. The fact that this refinancing can be achieved without
issuing fresh equity is clearly positive for the share price.
Slift as you well know the market is forward looking and when the SFO issue is sorted there will be increasing positive sentiment and the SP will jump. It will cause a cascade of positive emails, NOC allowing access to bidding. Placement on Saudi preferred bidders list, etc. There will be a lag on new work and revenue but the markets will price in an expectation that the revenue will be larger in the future.
Slift as you well know the market is forward looking and when the SFO issue is sorted there will be increasing positive sentiment and the SP will jump. It will cause a cascade of positive emails, NOC allowing access to bidding. Placement on Saudi preferred bidders list, etc. There will be a lag on new work and revenue but the markets will price in an expectation that the revenue will be larger.
From Full years Results published in March
"If the lenders under the RBL Facility were to conclude that the information submitted does not fulfil the requirements of the Liquidity Forecast Test and the Group was unable to cure the resulting default by the end of April 2021, there would be an event of default. Such event of default would allow the lenders under the RBL Facility, at their discretion, to cancel the RBL Facility and demand that all outstanding borrowings under the RBL Facility be repaid and/or enforce their security rights. This would in turn trigger other creditors' rights to call cross-defaults under the other financing arrangements of the Group (namely the Convertible Bonds, the 2022 Senior Notes and the 2025 Senior Notes) which could result in the entirety of the Group's borrowings potentially becoming immediately repayable by the end of April 2021. While discussions in respect of a Refinancing Proposal are continuing the Directors believe that, if required, a waiver of such a potential event of default in respect of the Liquidity Forecast Test could be agreed with the lenders under the RBL Facility."
Should we be expecting to hear something this week on this, either RNS confirming Liquidity Forecast Test fulfilled or a waiver for the April deadline?
Next big announcement could be even OO specific, perhaps the opening of a large 4th clinic with new clinic trials booking it out in advance.
K
"He could stress that any information given was under duress. IF the courts accept his reasoning, they could then strike out evidence submitted."
It would be difficult to prove duress.
KBR refused to hand over any documentation fullstop and the supreme court ruled that they were correct due to territorial scope.
But PFC are working with the SFO and probably provided the information that the SFO needed when asked.
He has pled guilty to 11 counts, I would like to be wrong on this but I can't see it been overturned.
"The general markets were up nearly 1% today but VOD ended the day in the red once more. That's frustrating indeed!"
The cheaper Vodafone can buy back its own stock the better in my view. Daily fluctuations don't matter to me as a LTH.