6th Jul 2016 09:11
LONDON (Alliance News) - Oil and gas operator Tullow Oil PLC on Wednesday said it has launched a USD300.0 million convertible bond offering in order to diversify its sources of funding.
Tullow said the convertible bonds will mature in 2021, with the initial conversion price to be set at a premium of 30% to 35% to the volume-weighted average price of Tullow shares on Wednesday.
Shares in Tullow were down 14% mid-morning Wednesday to 206.70 pence, the worst performer in the FTSE 250.
Tullow said the funds raised through the issue will diversify its funding sources and will be used for general corporate purposes, in addition to funding development work at its assets in West and East Africa.
"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," said Ian Springett, Tullow's chief financial officer.
By Sam Unsted; [email protected]; @SamUAtAlliance
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