20th Mar 2015 07:03
LONDON (Alliance News) - Tullow Oil PLC Thursday said it has secured an additional USD450 million of capital under its existing credit facilities.
Tullow has completed a reserve-based lend redetermination process, which it completes every six months, which led to a USD200 million increase in lenders commitments after a review of the company's assets. This increased the available debt capacity to USD3.7 billion from USD3.5 billion despite lower oil prices, said the company.
Tullow also has arranged an additional USD250 million to its corporate credit facility which has risen to USD1.0 billion from USD750 million, and said it has also agreed to amend the financial covenants on the reserve-based lend and corporate credit facilities 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", said the company.
As a result, Tullow has a total of USD6.3 billion of committed debt facilities, with no near-term maturities.
"Today's announcement marks another important step in the comprehensive re-setting of our business and financing and demonstrates the resilience of our debt capital structure and the quality of our portfolio to generate significant liquidity, even at low oil prices," said Chief Financial OFficer Ian Springett.
By Joshua Warner; [email protected]; @JoshAlliance
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