- Tullow secures overwhelming bondholder backing for refinancing plan
Tullow Oil has taken a decisive step forward in its refinancing effort after securing overwhelming support from bondholders for a transaction designed to reshape its near-term debt profile.
In an update on Wednesday, the company said its consent solicitation relating to $1.285bn of 10.25 per cent senior secured notes due 2026 expired on April 21 with valid and unrevoked consents representing more than 99 per cent of the outstanding principal amount of the notes.
That level of support matters. It gives the independent energy group, whose core producing assets are in Ghana, a much firmer platform from which to execute a refinancing transaction that had become central to managing its balance sheet ahead of the 2026 maturity wall.
Tullow said the settlement date is expected on April 24, 2026. Under the structure outlined in the release, holders of the existing notes, whether or not they participated in the consent process, will first have a portion of their notes redeemed at par and on a pro rata basis on April 23, together with accrued and unpaid interest on that redeemed amount. They will then receive, on April 24, the new notes, accrued and unpaid interest on the remaining notes outstanding, and a 1.00 per cent fee calculated on the aggregate principal amount outstanding at the expiration time.
In effect, the company is using broad creditor approval to clear the way for a more orderly transition from the old notes into a new debt structure. The transaction also includes amendments to the existing indenture and intercreditor arrangements, as well as waivers to permit the release of collateral in connection with the refinancing.
Tullow noted that the consent solicitation covered approval for three main elements: amendments to the existing note documentation, the release of the current notes and issuance of new notes under an amended and restated indenture, and certain waivers under the existing indenture.
The company said that on April 10 it had already executed supplemental indentures to implement parts of the process, including provisions to allow the pro rata redemption of the existing notes, reduce minimum denominations and implement the waiver. However, the remaining amendments will only become operative on the settlement date, subject to the satisfaction of the conditions set out in the consent solicitation statement.
For Tullow, the strong take-up is more than a technical debt-market success. It signals that creditors have chosen to back management’s attempt to refinance rather than force a more uncertain confrontation with a looming maturity. That does not remove the company’s broader operating and financial pressures, but it does materially ease one of the most immediate risks hanging over the business.
The company described the announcement as a further update on its previously announced refinancing transaction, underscoring that this is part of a larger liability-management exercise rather than a standalone consent event.
