Sterling Resources to cancel super senior revolver for planned merger

By Susanna Moon

Chicago, March 6 – Sterling Resources Ltd. plans to cancel wholly owned subsidiary SRUK Holdings Ltd.’s super senior revolving credit facility related to a planned merger with Oranje-Nassau Energie BV (ONE).

ONE plans to acquire Sterling for $163 million less the amount needed to redeem $40 million principal amount of bonds issued by SRUK, the amount needed to cancel the revolver and other adjustments for change of control and interim period costs relative to targeted amounts, according to a company announcement.

After the adjustments, the company expects the net proceeds from the sale of SRUK to be about $113 million, assuming a completion date of May 15.

The deal requires shareholder approval.

As announced March 21, 2016, noteholders approved the planned recapitalization of Sterling Resources (UK) Ltd.’s $180 million 9% senior secured bonds due 2019.

Sterling Resources is an oil and gas company based in Calgary, Alta.

ONE is a privately owned Amsterdam-based oil and gas company.

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