Tullow - comment

Only $141m of Tullow Sub Bonds were tendered at 92%, spending c.$130m of the $300m allocated to the tender. With the bonds trading in the 60’s during the summer and in the high 70’s as recent as October we are surprised that the take up wasn’t greater.

We expect the ratings agency will downgrade the Sub Bonds, similar to the Senior Notes, on the back of this sub-par tender, but this transaction was definitely the right thing for the Company to do.