Tullow Oil launches bond offering

LONDON, July 6, 2016 – Tullow Oil is looking to diversify its sources of funding, the UK independent said on Wednesday, announcing a convertible bond offering to help fund capital investments in the company’s Africa operations.

In a statement on its website, Tullow Oil said that its offering of USD 300 million of convertible bonds are due in 2021, and set the first interest payment date to January 12, 2017. The company expects the bonds to carry a coupon of between 5.875% and 6.625% per year.

“The proposed Convertible Bond issue will further diversify Tullow Oil’s sources of funding and give the company access to a new investor base. As per our most recent trading statement, our focus will continue to be on strengthening the balance sheet and deleveraging the business,” Tullow CFO Ian Springett said.

Tullow Oil has been experiencing difficulties offshore Ghana in the conversion of the Kwame Nkrumah floating production, storage and offloading vessel to a spread-moored unit. Technical issues with a turret bearing have resulted in extended shutdowns, and production so far this year has been cut by some 27% to 74,000 bopd. The company hopes to ramp up production to around 100,000 bopd in the second half of 2017.

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