The company’s subsidiary, Talos Production Inc., will use the capital to cover cash considerations for the strategic acquisition and to redeem its outstanding 9.000% notes. These new instruments will be guaranteed by the parent company and several subsidiaries, while maintaining a second-priority security interest in collateral tied to the firm's existing reserves-based credit facility.

Management has included a protective clause for investors: if the acquisition fails to close by December 31, 2026, or if third-party purchase rights are triggered, the company will initiate a special mandatory redemption for $175 million of the notes at face value. The offering is restricted to qualified institutional buyers under Rule 144A and non-U.S. investors under Regulation S.