Tullow Oil Takeover Rumours (TLW)

dros1, They would pay if they can, as not paying will be disastrous for shareholders. However the order of security over Tullow assets in the event of default is: 1st Lien 10.25% bonds + bank debt Glencore facility Senior 7% bonds Shareholders They already know they won't have the funds to pay 1st Lien bonds when due in 2026 so it makes sense to restructure before the maturity date is hit for the junior 7% bonds. If they insist on paying the 7% bonds out in full, just because they have the funds, it could be argued that they acted in a way that is not proportionate to different stakeholder's interests. Barring a takeover, nothing else apart from an early re-structure makes makes any sense.

(Sharecast News) - Tullow Oil tumbled on Tuesday after Kosmos Energy said it does not plan to make an offer for the oil and gas exploration company. Kosmos did not provide any reasons for its decision, saying simply that it does not intend to make an offer "at this time". Shares in Tullow surged last week after it confirmed it was in preliminary talks with Kosmos about a potential takeover. Kosmos had until on 9 January 2025 to either announce a firm intention to make an offer or walk away. At 1105 GMT, Tullow shares were down 8% at 21.44p.

forwood, "With free cash flow around $150 to 200m, debt is manageable and likely repayable within 10 years (is there a plan for this?). Odd to be falling so much." Odd to be falling so much? Not really, we do not have 10 years of P2 reserves to produce that sort of FCF (to firm? to equity?), more like 4 years, so buying off Wshak and Loglorry might not be cheap - why would they extend the redemption date on the 2026 Senior Secured Notes if they think they are not going to get their debt principal repaid in full? Any takeover terms will surely reflect this.

This is the only share I have and it’s turning out to be so boring! A takeover would sort it out so fingers crossed!