(Talos, 14.Dec.2020) — Talos Energy Inc. announced that Talos Production Inc., a wholly owned subsidiary of Talos Energy, has commenced an offering of $400mn in aggregate principal amount of new Second-Priority Senior Secured Notes due 2026 (the “new notes”).
The company intends to use the net proceeds from the Offering to (i) fund the redemption of all of the outstanding 11% Second-Priority Senior Secured Notes due 2022 issued by the company and Talos Production Finance Inc. and (ii) pay any premiums, fees and expenses related to the Redemption and the issuance of the new notes. The company intends to use any remaining net proceeds for general corporate purposes, which may include the repayment of a portion of the outstanding borrowings under its reserves-based lending facility.
It is expected that the new notes will be guaranteed on a senior basis by Talos Energy and certain of the company’s subsidiaries and initially be secured on a second-priority basis by substantially the same collateral as the company’s existing first-priority obligations under its senior reserve-based revolving credit facility.
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