Irish-listed exploration company Tullow Oil has refinanced its $500 million (€364 m) corporate revolving credit facility and increased the size of the facility to $750 million. It has also extended the tenor of the facility to April 2017.
Ian Springett, chief financial officer with Tullow Oil plc said that the deal forms "an important piece of our debt capital structure", which also includes $3.5 billion of reserve based lending facilities and $1.3 billion of senior notes, the second tranche of which was priced last week.
“We have taken advantage of currently strong debt markets to increase our bank commitments, further diversify our sources of funding and extend the maturity of our debt. With Tullow also benefitting from strong cash flow from production, the company is well-financed with strong liquidity and considerable financial flexibility,” he said.
According to Tullow Oil, the arrangement is a fully committed, secured and revolving credit facility and replaces the previous facility which was due to expire in November 2014.
Mandated lead arrangers of the facility are Bank of America Merrill Lynch, BNP Paribas, Credit Agricole Corporate & Investment Bank, HSBC Bank, ING Bank, Natixis, Société Générale, Standard Chartered Bank, The Royal Bank of Scotland and Standard Bank.
