Tullow Oil 2022 Bondholders Hire Rothschild for Refinancing Negotiations; 2021 Convertible Investors Organize With Weil Gotshal, Hear FA Pitches

Investors holding Tullow Oil’s $650 million 6.25% unsecured 2022 bond have hired Rothschild as financial advisor for its upcoming debt talks, sources close told Reorg. Akin Gump is providing legal advice to the 2022 bondholders in the context of what the Africa-focused upstream energy company is describing as a refinancing.

A group of investors in Tullow Oil’s $300 million 6.625% 2021 convertible bond has organized and retained Weil Gotshal as its legal advisor. Financial advisors pitched the 2021 noteholders before the Christmas holiday and a decision is yet to be made on that appointment.

Tullow’s 2022 notes are quoted at 77/81, while the $300 million 6.625% 2021 convertible notes are at 85/90, according to a broker.

Tullow Oil is due to discuss refinancing options with its bondholders after completing a redetermination of its $2 billion RBL facility. Lenders in the senior facility may request that the company use a material portion of its Uganda asset sale proceeds to reduce the size of the facility. The degree of RBL reduction will form the basis of the talks with the junior bondholders. As of Nov. 10, Tullow had $1 billion in liquidity headroom.

Tullow Oil’s RBL lenders are working with Perella Weinberg and Clifford Chance. The company is advised by Latham & Watkins and PJT.

The company’s capital structure as of June 30 is shown below. On Nov. 10, the group received $500 million cash from its Ugandan asset sale.