Goodrich Petroleum launches $100 million second-lien term loan

By Sara Rosenberg

New York, Dec. 11 - Goodrich Petroleum Corp. held a conference call on Tuesday to launch its proposed $100 million senior second-lien term loan due Dec. 31, 2010, according to a market source.

BNP Paribas is the lead bank on the deal.

Of the total term loan amount, $50 million is expected to be funded around Jan. 10 and the other $50 million will be delayed-draw for a maximum period of four weeks.

The term loan is priced at Libor plus 600 basis points, is being offered at par, 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 anytime 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.

The delayed-draw portion has an unused fee of 50 bps.

Proceeds will be used to pay down revolver borrowings.

Recently, the company closed on an offering of 5.8 million shares of common stock. Net proceeds from the offering were $145.4 million. The company will use $123.9 million of the net proceeds to pay off outstanding borrowings under its senior credit facility and $21.5 million of the net proceeds to purchase capped call options on an aggregate of 5.8 million shares of its common stock from affiliates of Bear, Stearns & Co., Inc. and J.P. Morgan Securities Inc.

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

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