Linklaters advises Glencore on the refinancing of Tullow Oil’s debt

Linklaters has advised Glencore as part of the successful refinancing of Tullow Oil’s financial indebtedness including its $1.285bn senior secured notes and $400m Glencore junior notes. The transaction was implemented consensually with Glencore and by way of a consent solicitation of the senior secured notes which obtained 99.7% support from noteholders.

The comprehensive, complex refinancing transaction was designed to extend Tullow’s debt maturity profile, support the delivery of its investment programme, and create a stable platform for value-maximisation of its asset base.

Key highlights include a maturity extension of the senior secured notes to 15 November 2028 accompanied by a debt paydown of $100 million providing the runway required to deliver its investment programme and realise asset value; Glencore’s $400 million secured notes facility being replaced with $423 million Glencore junior notes maturing 15 May 2030; and the provision of a $100 million super senior revolving cargo prepayment facility provided by Glencore.

Furthermore, Tullow strengthens its corporate governance framework through the appointment of at least three new independent non-executive directors and the formation of a dedicated board sub-committee to oversee a disciplined value-maximisation process across the Company’s asset base.

This transaction is a further testament to Linklaters’ market-leading restructuring and insolvency practice, reinforcing the firm’s position at the forefront of complex cross-border mandates.

The cross-practice Linklaters team advising was led by Rowland Light (Partner, Restructuring & Insolvency, London), Toby Grimstone (Co-global Head of Banking) and Ewan Smith (Managing Associate, Restructuring & Insolvency, London).

Other team members included Atish Shah (Partner, Banking Corporate & Structured Lending, London), Christianne Williams (Partner, Banking Leveraged Finance, London), Ifeanyi Chukwulobelu (Managing Associate, Banking Corporate & Structured Lending, London), Richard Ness (Managing Associate, Corporate, London), Erin Gordon (Associate, Restructuring & Insolvency, London), Robyn Wyatt (Associate, Restructuring & Insolvency, London), Rory Carbery (Associate, Banking Corporate & Structured Lending, London), Felipe Barros Lima (Associate, Banking Leveraged Finance, London) and Kai Costelloe (Trainee Solicitor, Restructuring & Insolvency, London).