Talos Energy has announced the addition of an affiliate of DNB ASA to its reserves-based loan ("RBL") syndicate, adding an additional $75 million commitment to the credit facility, resulting in approximately $380 million of pro forma liquidity as of June 30, 2021. DNB has joined the Company's lending syndicate as a Joint Lead Arranger, Joint Bookrunner and Syndication Agent and is the thirteenth commercial bank in the credit facility, the maturity for which was recently extended to November 2024.

In June 2021, Talos announced its spring borrowing base redetermination and the completion of amendments to extend its RBL maturity to approximately three and a half years, eliminating the last material near-term maturity in its capital structure and solidifying its committed lender base. The twelve RBL syndicate banks unanimously approved the $950 million borrowing base and initial commitments of $655 million, which will now increase to $730 million following the addition of DNB to the syndicate. Strong operating results and a supportive commodity price environment continue to boost Talos's expectation of significant positive free cash flow for the remainder of 2021, driving further reductions in borrowings, increasing liquidity and allowing the Company to return to pre-pandemic leverage multiples ahead of prior expectations.

Talos President and Chief Executive Officer Timothy S. Duncan commented: 
"We're excited to further strengthen our balance sheet by adding a thirteenth bank with a significant lending commitment so soon after the recently announced extension of our credit facility. DNB is a major international lender with deep experience in conventional geological basins throughout the world and a lending footprint that aligns with our growth aspirations. We look forward to their future support not only as a commercial bank, but as we evaluate international M&A opportunities and future capital markets activities as well. While already well positioned, we expect our balance sheet to continue to improve in the second half of the year with additional liquidity improvement and further leverage reduction and that our strong financial standing will continue to provide flexibility to pursue our strategic growth objectives."

KeyFacts Energy Industry Directory Talos Energy US Gulf of Mexico country profile