@BusinessDaily

Tullow plans Sh65bn note issue to settle debt

3 months ago, 12 Mar 18:28

By: Brian Ngugi

British oil explorer Tullow Oil says it intends to raise Sh66 billion ($650 million) through senior notes to settle debt incurred earlier but is due in two years’ time. The firm said new notes would be repaid in full in 2025. They will be guaranteed by the company’s subsidiaries including the Kenya unit. The interest will be payable semi-annually, but the rate, offering price and other terms are yet to be determined, and are subject to market conditions, it added. In 2014, the oil explorer, whose Kenyan subsidiary has so far discovered commercial quantities of oil around Lake Turkana, raised $650 million through a note, enabling it to retire some of its debts. The note ranks higher than other debt — meaning its payment is of utmost priority — as it is termed “senior obligations of the company and guaranteed by certain of Tullow’s subsidiaries.” Senior notes rank higher than the other debts as they have to be paid before others obligations are settled. Tullow said last month it had pumped additional $2.9 billion (Sh293 billion) into the Kenyan operation targeting full-scale export of Kenya’s oil to begin in four years’ time.
Read More


Category: business opinion news markets corporate economy lifestyle

Suggested

12 hours ago, 11:28
@BusinessDaily - By: Stella Cherono
Kebs MD Ongwae arrested

Mr Ongwae is currently being grilled at the DCI headquarters in Nairobi. ...

Category: business news lifestyle markets opinion economy corporate
1 hour ago
@DailyNation - By: Subiri Obwogo
Diary of a poultry farmer: Producing eggs during cold seasons

Chickens, like human beings, require a balanced diet ...

Category: business news
1 hour ago
@DailyNation - By: Peter Changtoek
Tissue culture plantlet business pays: Expert

PhD holder gives advice to farmers and clients, links them to markets. His passion for raising seedlings started many years ago. ...

Category: topnews news business
20 minutes
@AfricaNews - By: Africanews
Ivory Coast aims to grind 1 million tonnes of cocoa beans by 2022 | Africanews

Ivory Coast has an installed grinding capacity of 712,000 tonnes. Increasing that capacity and new grinding units will enable it to reach the target within the next four years, CCC deputy head Yao N'g ...

Category: africa africa_business business news
9 hours ago, 14:06
@StandardMedia - By: Reuters
Kenya Airways to restart hedging to counter oil price volatility

Kenya Airways’ immediate biggest challenge is oil price volatility, and the airline will restart price hedging, its chief executive officer said on Fr ...

Category: business news
13 hours ago, 10:21
@DailyNation - By: Grace Gitau
Nyeri budget: Executive pulls a Rotich, scraps unpopular levies

County executive mimics the national government budget reading process ...

Category: topnews news business

@BusinessDaily

Tullow plans Sh65bn note issue to settle debt

3 months ago, 12 Mar 18:28

By: Brian Ngugi
British oil explorer Tullow Oil says it intends to raise Sh66 billion ($650 million) through senior notes to settle debt incurred earlier but is due in two years’ time. The firm said new notes would be repaid in full in 2025. They will be guaranteed by the company’s subsidiaries including the Kenya unit. The interest will be payable semi-annually, but the rate, offering price and other terms are yet to be determined, and are subject to market conditions, it added. In 2014, the oil explorer, whose Kenyan subsidiary has so far discovered commercial quantities of oil around Lake Turkana, raised $650 million through a note, enabling it to retire some of its debts. The note ranks higher than other debt — meaning its payment is of utmost priority — as it is termed “senior obligations of the company and guaranteed by certain of Tullow’s subsidiaries.” Senior notes rank higher than the other debts as they have to be paid before others obligations are settled. Tullow said last month it had pumped additional $2.9 billion (Sh293 billion) into the Kenyan operation targeting full-scale export of Kenya’s oil to begin in four years’ time.
Read More

Category: business opinion news markets corporate economy lifestyle

Suggested

12 hours ago, 11:28
@BusinessDaily - By: Stella Cherono
Kebs MD Ongwae arrested

Mr Ongwae is currently being grilled at the DCI headquarters in Nairobi. ...

Category: business news lifestyle markets opinion economy corporate
1 hour ago
@DailyNation - By: Subiri Obwogo
Diary of a poultry farmer: Producing eggs during cold seasons

Chickens, like human beings, require a balanced diet ...

Category: business news
1 hour ago
@DailyNation - By: Peter Changtoek
Tissue culture plantlet business pays: Expert

PhD holder gives advice to farmers and clients, links them to markets. His passion for raising seedlings started many years ago. ...

Category: topnews news business
20 minutes
@AfricaNews - By: Africanews
Ivory Coast aims to grind 1 million tonnes of cocoa beans by 2022 | Africanews

Ivory Coast has an installed grinding capacity of 712,000 tonnes. Increasing that capacity and new grinding units will enable it to reach the target within the next four years, CCC deputy head Yao N'g ...

Category: africa africa_business business news
9 hours ago, 14:06
@StandardMedia - By: Reuters
Kenya Airways to restart hedging to counter oil price volatility

Kenya Airways’ immediate biggest challenge is oil price volatility, and the airline will restart price hedging, its chief executive officer said on Fr ...

Category: business news
13 hours ago, 10:21
@DailyNation - By: Grace Gitau
Nyeri budget: Executive pulls a Rotich, scraps unpopular levies

County executive mimics the national government budget reading process ...

Category: topnews news business
Our App