Goodrich Petroleum seeking $100 million second-lien term loan on best efforts basis

By Sara Rosenberg

New York, Nov. 28 - Goodrich Petroleum Corp. is working on syndicating a $100 million senior second-lien term loan due Dec. 31, 2010 on a best efforts basis, according to an 8-K filed with the Securities and Exchange Commission Wednesday.

BNP Paribas is the lead bank on the deal.

Of the total term loan amount, $50 million is expected to be funded on or before Dec. 31, and the company will have the option to fund an additional $50 million at any time prior to Feb. 15, 2008.

The term loan is priced at Libor plus 600 basis points and is non-callable for one year, then at 101 in year two and par thereafter.

However, the company does have the right to prepay at any time at par up to 30% of the term loan with proceeds from an equity offering during the term of the loan, subject to certain terms and conditions.

Proceeds will be used to pay down revolver borrowings.

Goodrich is a Houston-based crude oil and natural gas company.

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