Tullow Oil to offer $650m of seven-year bonds

Tullow Oil said on Monday that it plans to offer $650m of seven-year bonds.

Net proceeds will be used together wish cash on hand to redeem in full the company’s senior notes that are due to be repaid in 2020.

Interest will be payable semi-annually and Tullow said the interest rate, offering price and other terms will be determined at the time of pricing of the offering, subject to market conditions.

In its full-year results for 2017 last month, Tullow said it had net debt of $3.5bn with facility headroom including free cash of $1.1bn.

At 0955 GMT, the shares were down 1.5% to 188.25p.