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Talos Energy Prices $800 Million Debt Offering for Gulf Acquisition

Houston-based Talos Energy has priced $800 million in second-priority senior secured notes due 2034, carrying an 8.000% interest rate. The capital raise is earmarked to fund a pending acquisition in the Gulf of America while simultaneously refinancing existing 9.000% notes maturing in 2029.

The offering, conducted through the company's subsidiary Talos Production Inc., is slated to close around July 13, 2026, pending customary market conditions. Management plans to deploy the proceeds to cover the cash portion of its upcoming acquisition, settle the redemption of the 2029 notes, and address transaction-related expenses.

A specific safeguard is embedded in the deal structure: should the acquisition fail to materialize by December 31, 2026, or if specific third-party purchase rights are triggered, the company must execute a special mandatory redemption for $175 million of the notes at par value plus accrued interest. The new debt will be guaranteed by Talos Energy and its subsidiaries, secured on a second-priority basis by collateral currently backing the firm's primary revolving credit facility.

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