LRR Energy second lien loan to be repaid in acquisition by Vanguard

New York, April 20 – LRR Energy, LP’s second lien term loan will be repaid as part of the acquisition of the company by Vanguard Natural Resources, LLC.

The loan must be repaid on a change of control, the companies said in their announcement of the transaction.

Interest savings from the repayment along with reductions in general and administrative costs will make the acquisition immediately accretive to Vanguard’s distributable cash flow per unit. It will also reduce Vanguard’s pro forma leverage.

Vanguard and LRR announced on Monday that Vanguard will acquire LRR for $251 million in Vanguard common units and the assumption of LRR’s $288 million of net debt.

LRR is a Houston-based limited partnership formed by affiliates of Lime Rock Resources to operate, acquire, exploit and develop producing oil and natural gas properties in North America. Vanguard, also based in Houston, is focused on the acquisition, production and development of oil and natural gas properties.

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