HOUSTON, Jan. 14, 2021 /PRNewswire/ -- Talos Energy Inc. ("Talos" or the "Company") (NYSE: TALO) today announced that the Company has completed a series of capital markets activities to refinance the Company's near-term bond maturities, significantly enhance liquidity and provide the Company with greater strategic flexibility entering 2021.
Since mid-December 2020, Talos has cumulatively raised over $670 million of gross proceeds across three transactions, allowing for retirement of Talos's previous second lien notes maturing in April 2022 as well as reducing the current utilization under the Company's credit facility. Talos has extended its bond maturity until 2026 and is expected to have over $550 million of liquidity pro forma for the transactions. The new second lien notes received credit ratings from all three major rating agencies and the indenture added flexibility for financings related to potential future M&A transactions and substantial room for project financing related to the development of the world class Zama discovery.
President and Chief Executive Officer Timothy S. Duncan commented: "Our success in the capital markets over the past month has provided Talos with excellent positioning across all strategic, financial and operational fronts as we enter 2021. The refinancing of a material near-term maturity removes a key financial risk, which was a top financial priority for Talos in recent months. Additional proceeds from the offerings will be used to significantly reduce borrowings under our credit facility."
Duncan continued: "We are excited to have positioned the enterprise for success as we start the new year. More broadly, our enhanced liquidity and maturity profile provides solid footing for potential commodity price volatility, as well as the enhanced ability to evaluate a broad range of available business development and M&A opportunities and, ultimately, execute the best possible plan to build long-term shareholder value. We appreciate the longstanding relationships with our underwriters and bank group that helped to effect these successful transactions and look forward to continuing to work with them as we build Talos into one of the premier upstream companies."
Unrelated to the recent transactions, Talos also expects to file an amended S-3 filing related to the Company's previously executed transaction with Castex 2005. The S-3 filing amends the Company's previous S-3 filing from September 2020, and is not related to any potential offering of additional, new securities.
ABOUT TALOS ENERGY
Talos Energy (NYSE: TALO) is a technically driven independent exploration and production company focused on safely and efficiently maximizing cash flows and long-term value through its operations, currently in the United States Gulf of Mexico and offshore Mexico. As one of the U.S. Gulf of Mexico's largest public independent producers, we leverage decades of geology, geophysics and offshore operations expertise towards the acquisition, exploration, exploitation and development of assets in key geological trends that are present in many offshore basins around the world. Our activities in offshore Mexico provide high impact exploration opportunities in an oil rich emerging basin. For more information, visit www.talosenergy.com.
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This communication contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact included in this communication, regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements, including, but not limited to, statements regarding the Company's expected capitalization and liquidity after consummation of the transactions described herein. When used in this communication, the words "could," "believe," "anticipate," "intend," "estimate," "expect," "project," "forecast, "may," "objective," "plan" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on our current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events.
We caution you that these forward-looking statements are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond our control. These risks include, but are not limited to, commodity price volatility, including the sharp decline in oil prices beginning in March 2020, the impact of the coronavirus disease 2019 ("COVID-19") and governmental measures related thereto on global demand for oil and natural gas and on the operations of our business, the ability or willingness of the Organization of Petroleum Exporting Countries ("OPEC") and non-OPEC countries, such as Saudi Arabia and Russia, to set and maintain oil production levels and the impact of any such actions, lack of transportation and storage capacity as a result of oversupply, government regulations and actions, including with respect to repairs to the Ram Powell facility, the impact of hurricanes and other storms, including Hurricane Delta, or other factors, inflation, lack of availability of drilling and production equipment and services, environmental risks, drilling and other operating risks, regulatory changes, the uncertainty inherent in estimating reserves and in projecting future rates of production, cash flow and access to capital, the timing of development expenditures, the possibility that the anticipated benefits of recent acquisitions are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of such acquisitions, and other factors that may affect our future results and business, generally, including those discussed under the heading "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2019 and other risk factors as detailed from time to time in our reports filed with the U.S. Securities and Exchange Commission.
Should one or more of these risks occur, or should underlying assumptions prove incorrect, our actual results and plans could differ materially from those expressed in any forward-looking statements. All forward-looking statements, expressed or implied, are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue. Except as otherwise required by applicable law, we disclaim any duty to update any forward-looking statements, to reflect events or circumstances after the date of this communication.
Estimates for our future production volumes are based on assumptions of capital expenditure levels and the assumption that market demand and prices for oil and gas will continue at levels that allow for economic production of these products. The production, transportation, marketing and storage of oil and gas are subject to disruption due to transportation, processing and storage availability, mechanical failure, human error, hurricanes and numerous other factors. Our estimates are based on certain other assumptions, such as well performance, which may vary significantly from those assumed. Therefore, we can give no assurance that our future production volumes will be as estimated.
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