Tullow - comment

What about the LOC? Tullow has downsized its undrawn RCF from $500m to $250m and extended to June 2025, with no mention of the LOC. Tullow has a Letter of Credit facility of$100m minimally used, which matures in December 2024. The extension of the RCF of only 6 months is pretty meaningless as the Company will need to deal with upcoming maturities in FY25.  The Company has c. $500m of Senior Notes (sub bonds) maturing in March 2025 with a further $100m of Senior Secured Notes payable in May and the balance of $1.3bn of the Senior Secured Notes in May 2026.  The undrawn portion ($270m) of the Glencore facility plus cash is sufficient to deal with the sub notes but the Senior Secured Notes will still require a solution.