SOVEREIGN DEBT RESTRUCTURING | MASTERCLASS

A deep dive masterclass on sovereign debt restructuring, to be conducted virtually by Asian high yield bond expert Florian Schmidt.

30 June 2022 (Thu), 5pm Singapore/HK time

Tullow Oil said they will be able to repay their debt and are in talks with creditors, bondholders with a focus maturity matching their expected cashflows. The company has $4.3bn in net debt as per Bloomberg with most of its obligations in long-term debt and has operating losses of $3.1bn as of June 2020. CEO Rahul Dhir said “We will be able to repay the debt and we have line of sight to say how do you get to $1-$1.5 billion (debt) and importantly to be in the 1 to 2 (times) net debt to EBITDA range… The discussions from our perspective really are about matching debt maturities to the timing of cashflow. That’s the problem we’re trying to solve”. A couple of days ago, the company mentioned it signed two sale and purchase agreements for all of Tullow’s assets in Africa namely, Equatorial Guinea (EG) and the Dussafu asset in Gabon, both totalling to $180mn. Tullow’s 7% 2025s are up 9% in the last two days and are currently at 74.25, yielding 15.9%.

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