Tullow secures additional $450M of capital under existing credit facilities

Tullow Oil plc has provided an update on its financing and banking arrangements.

Tullow and its lending banks have completed the six-monthly Reserve Based Lend (RBL) redetermination process; the quality of Tullow’s asset portfolio supported a $200 million increase in lenders commitments, increasing available debt capacity from $3.5 billion to $3.7 billion, despite lower oil prices; arranged an additional $250 million of lenders commitments, secured through the corporate credit facility, which has been increased from $750 million to $1 billion; and agreed an amendment to the financial covenant on the RBL and corporate facility to address the risk of any potential covenant breach during a period of oil price volatility and investment in production and development assets in West Africa.

As a result, the Group has around $6.3 billion of currently committed debt facilities with no near-term maturities.

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