Tullow Oil refinances credit facility

7th Apr 2014 07:08

Tullow Oil has refinanced its 500m dollar corporate revolving credit facility to boost its balance sheet. The oil and gas company has increased the facility to $750m and extended the tenor to April 2017.It replaces the previous facility which was due to expire in November.Mandated lead arrangers are Bank of America Merrill Lynch, BNP Paribas, Credit Agricole Corporate & Investment Bank, HSBC Bank, ING Bank, Natixis, Société Générale, Standard Chartered Bank, The Royal Bank of Scotland and Standard Bank.Chief Financial Officer, Ian Springett, said: "This $750m corporate facility forms an important piece of our debt capital structure which also includes $3.5bn of reserve based lending facilities and $1.3bn of senior notes, the second tranche of which was priced last week. "We have taken advantage of currently strong debt markets to increase our bank commitments, further diversify our sources of funding and extend the maturity of our debt. With Tullow also benefitting from strong cash flow from production, the company is well-financed with strong liquidity and considerable financial flexibility."RD