Talos Energy Completes Comprehensive Refinancing

Talos Energy Inc. 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.