BATON ROUGE, LOUISIANA (By Steve Stewart, Energy Analytics Institute, 1.Jul.2026, Works: 291) â Talos Production Inc., a wholly owned subsidiary of Talos Energy Inc., priced an offering of $800mn in aggregate principal amount of new 8.000% second-priority senior secured notes due 2034.
The offering is expected to close on or about 13 Jul. 2026, subject to customary closing conditions, Talos said on 1 Jul. 2026 in an official statement.
Talos intends to use the net proceeds from the offering for the following:
(i) to fund a portion of the cash consideration for the company’s recently announced pending Gulf of America acquisition,
(ii) to fund the redemption of all of the outstanding 9.000% second-priority senior secured notes due 2029 issued by the company, and
(iii) to pay related fees and expenses.
âIf the acquisition is not consummated on or before 31 Dec. 2026, if the company notifies the trustee of the new notes that it will not pursue the consummation of the acquisition, or if the third-party preferential right to purchase certain assets subject to the acquisition is exercised, then an aggregate of $175mn principal amount of the new notes will be subject to a “special mandatory redemption” at a redemption price equal to 100% of the principal amount of the new notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date,â Talos said.
It is expected the new notes will be guaranteed on a senior basis by Talos and certain of the company’s existing and future subsidiaries and will initially be secured on a second-priority basis by substantially the same collateral as the company’s existing first-priority obligations under its senior reserves-based revolving credit facility.
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By Steve Stewart reporting from Baton Rouge. © 1999-2026 Energy Analytics Institute (EAI). All Rights Reserved.
