Tullow Oil proposes $750m rights issue at 45% discountStaff Writer | March 17, 2017
Tullow Oil has announced plans to carry out a £607m ($750m) rights issue at a 45% discount to its last closing price as feels it is the "right time to get our balance sheet in order".
Oil exploration The 25-for-49 rights issue
At the end of last year, Tullow's net debt stood at $4.8bn, having increased 19% despite issuing $300m of convertible bonds, though the company moved into positive free cash flow and still had significant headroom from its bank facilites and free cash of $1.0bn.
COO Paul McDade, who takes over as chief executive in April said: "Tullow has taken a number of significant steps since 2014 to re-set and restructure the business to ensure the group is well positioned to meet the challenge of lower oil prices.
"As a result, we are now producing positive free cash flow and have begun the process of reducing our debt." ■