Tullow refinances

Tullow Oil, the company which has a heavy exploration programme ahead of it in Ghana, has completed a massive debt refinancing.

The group has refinanced $3.5bn of Reserves Based Lend (RBL) credit facilities, replacing a previous facility which was due to expire in 2015.

The $3.5bn of credit facilities are split between a senior facility of $3.235bn, a junior facility of $100m, and an International Finance Corporation (IFC) facility of $165m, all with a final maturity of November 2019. In addition, Tullow has an option to increase the senior facility by up to an additional $500m, subject to receipt of further lender commitments.

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As well the IFC, 26 other lenders are in the syndicate that is providing the loan facilities.

Ian Springett, Chief Financial Officer for Tullow commented: "We are very pleased to close these arrangements which will refinance our existing RBL credit facilities. In conjunction with our strong operating cash flows this will provide a solid foundation for funding our major development projects in Ghana as well as other capital investments."

JH