Tullow Oil plc (LON:TLW) shares gained today as the mid cap oiler announced the refinancing of a US$2.5bn reserves based lending facility, extending final maturity to 2024.
As a result of the refinancing the company now has US$900mln of headroom and no near-term debt maturities.
WATCH: Tullow Oil's refinancing initiative impresses investors
It highlighted that the refinancing process was launched in October, following resolution of a maritime border dispute between Ghana and Cote d'Ivoire, and the process as materially over-subscribed.
"The refinancing of our RBL credit facility was a key objective for 2017 and we are very pleased to have completed this process in line with stated guidance and ahead of our year-end target,” said Les Wood, Tullow chief financial officer.
“The success of this transaction clearly demonstrates the high quality of the Group's assets, our ability to generate free cash flow and the strength of our long-standing banking relationships.
READ: Tullow Oil upgraded after better-than-expected results but debt question marks remain
“Following this refinancing, we have no material near-term debt maturities and will enter 2018 in a strong financial position."
In late afternoon trading, Tullow shares were 3.4%, or 5.8p higher at 175.3p.
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