Talos Energy Announces Pricing of Upsized Offering Of $500 Million Of Second-Priority Senior Secured Notes Due 2026
Talos Energy Inc. (“Talos Energy”) (NYSE: TALO) today announced that Talos Production Inc. (the “Company”), a wholly owned subsidiary of Talos Energy, has priced an upsized offering (the “Offering”) of $500 million in aggregate principal amount of new 12.00% 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 (the “Redemption”) of all of the outstanding 11.00% Second-Priority Senior Secured Notes due 2022 issued by the Company and Talos Production Finance Inc. (the “2022 Notes”) 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. The Offering is expected to close on or about January 4, 2021, subject to customary closing conditions.
The New Notes are being offered in the United States only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and to persons outside the United States only in compliance with Regulation S under the Securities Act. The New Notes have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.