Tullow Oil has completed a wide-ranging refinancing that it says will extend its debt maturities and reduce cash interest costs, providing what the company described as a firmer financial base to execute its business plan around its core producing assets in Ghana.
In a statement on Monday, the London- and Ghana-listed independent said the transaction was backed by more than 99 percent of bondholders and supported by commodity trader Glencore, underscoring the degree of creditor alignment after months of negotiation.
Ian Perks, Tullow’s chief executive, called the refinancing “a significant achievement” that would allow the company to “capture the full potential” of its assets, citing the combined effect of maturity extensions and lower cash interest payments.
The refinancing package included a series of steps that removed Tullow’s old bond structure and replaced it with a new set of secured notes and commodity-linked liquidity.
As part of the transaction, Tullow launched a consent solicitation to amend and waive provisions in its existing notes and intercreditor documentation, then redeemed $100 million of its existing notes at par plus accrued interest, and released the remainder, thereby extinguishing the obligations under those instruments.
The company also released all obligations under an existing $400 million secured notes facility, according to the statement.
The new capital structure is anchored by the issuance of approximately $1.185 billion of senior secured notes due in 2028, which Tullow referred to as the “New Notes.” Alongside these developments, the company issued about $423 million of junior secured notes under a subscription agreement dated April 24 and entered into a $100 million super senior cargo prepayment facility, adding a liquidity layer typical of producers whose cash flows are linked to crude liftings.
Glencore’s role in the transaction was formalized through the issue of $25 million of additional New Notes via a private placement subscription agreement, the company said.
Tullow said it issued the New Notes under Rule 144A and Regulation S formats and referenced the instruments’ identifiers in its statement. It added that the transaction’s “effective time” occurred on April 27, completing the closing steps set out in an implementation deed that was agreed in connection with the refinancing.
The company framed the refinancing as a strategic reset after a period in which upstream producers had faced tighter capital markets, higher interest rates, and renewed investor scrutiny over leverage.
For Ghana, where Tullow remains a core operator in the country’s petroleum production ecosystem, the company’s ability to stabilize its balance sheet is closely watched for what it implies about operational continuity, investment pacing, and the reliability of upstream cashflows.
Tullow said it is “committed to building a better future through the responsible oil and gas development of its core producing assets in Ghana” and noted that it is quoted on both the London and Ghanaian stock exchanges under the symbol TLW.
