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Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
15%: Rights issue might not solve Tullow’s debt problem

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Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Oil producer Tullow Oil (TLW) is under the cosh as it progresses a $750m rights issue at 130p to reduce the pressure on its stretched balance sheet.
It hasn’t raised enough money, in our view, as the rights issue is only 15% of the company’s total net debt of $4.8bn.
Tullow’s net debt hit an eye-watering five times earnings at the end of 2016.
Existing shareholders will receive rights to buy 25 new shares for every 39 shares they own.
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