Tullow Oil gives early tender results for 2025 notes; cap not reached

Chicago, Nov. 30 – Tullow Oil plc announced the early results of its tender offer relating to the $633,463,0000 outstanding 7% senior notes due 2025 (ISIN: USG91237AA87, US899415AE32) in an announcement.

The company is offering to buy up to $300 million of the notes.

As of the early deadline at 5 p.m. ET on Nov. 29, noteholders tendered $130,086,000 of their notes.

Pricing was determined through a modified Dutch auction procedure. The minimum purchase price per $1,000 principal amount was $900, and the maximum purchase price was $920.

The early tender offer consideration was set at $920 per $1,000 note. The early consideration includes a $50 early tender offer premium that was not initially going to be available to tendering noteholders after the early deadline. However, the company amended the offer so that noteholders will continue to receive the full $920 consideration.

The company will also pay accrued interest to but excluding the applicable payment date.

The tender offer will remain open through 5 p.m. ET on Dec. 14.

Early settlement will be Dec. 20, the same as the final payment date.

As the offer was not oversubscribed as of the early tender deadline, tenders received after the early deadline may still be prorated if the offer becomes oversubscribed.

Tender instructions are irrevocable except in limited circumstances.

The company intends to fund the aggregate tender consideration with drawings under its $400 million five-year notes facility agreement with Glencore Energy UK Ltd. entered into on Nov. 11. The company plans to pay all accrued interest with cash on hand.

ING Bank NV, London Branch (+44 20 7767 6784; liability.management@ing.com) and Standard Chartered Bank (212 667-0351, +44 20 7885 5739, +852 398 38658, +65 6557 8286; liability_management@sc.com) are the lead dealer managers. Absa Bank Ltd., DNB Markets, Inc., J.P. Morgan Securities plc, Nedbank Ltd. and Standard Bank of South Africa Ltd. are co-dealer managers.

Morrow Sodali Ltd. (+852 2319 4130, +44 20 4513 6933, 203 658-9457; tullowoil@investor.morrowsodali.com; https://projects.morrowsodali.com/ tullowoilSUN) is the information and tender agent.

The company said it is carrying out the tender offer as part of its plan to optimize and proactively manage its cash, debt profile and capital structure.

Tullow is an independent oil and gas, exploration and production group based in London.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.