Tullow Oil Announces Fully Underwritten $750m Rights Issue
Tullow 25 for 49 fully underwritten rights issue of 466,925,724 new ordinary shares to raise gross proceeds of ~GBP607m, co. says in statement.
- Tullow Oil proposed rights issue at price of 130p/shr
- Tullow will host a conference call for investors and analysts at 9.00 a.m. UK time Friday
- Rights issue is subject to shareholder approval
- Without proceeds of the rights issue, and under a worst-case scenario, company says there is the possibility it will breach its leverage covenant in its $3b RBL facility and $225m corporate debt facility for measurement period ending Dec. 31, 2017 and thereafter
- It is the company’s intention to refinance the RBL facilities in 2017 and as part of refinancing the company will seek to agree with lenders a covenant profile that will ensure it remains in compliance with the leverage covenant
- Deal underwritten by Barclays, JPMorgan acting as joint global coordinators and bookrunners; Morgan Stanley is joint bookrunner; BNP Paribas, Crédit Agricole CIB and SocGen are co-bookrunners; DNB Markets, ING, Natixis, Nedbank are co-lead managers