WildHorse Resource use revolver borrowings to help fund acquisition

By Tali Rackner

Minneapolis, May 11 – WildHorse Resource Development Corp. plans to use borrowings under its revolving credit facility to help fund its acquisition of roughly 111,000 net acres and associated production from Anadarko Petroleum Corp. and affiliates of Kohlberg Kravis Roberts & Co. LP, according to a news release.

The total transaction price is $625 million. The company will also use cash and common stock to fund the purchase.

On April 4, the borrowing base on the revolving credit facility increased to $450 million from $362.5 million in connection with the semiannual redetermination. According to the release, WildHorse has been in preliminary talks with its bank group to re-determine its borrowing base as a result of the additional PDP reserves to be acquired in the transaction.

Based on early indications from its bank group, the company said it expects its borrowing base to increase by $200 million in connection with the transaction closing.

WildHorse is an oil and natural gas company based in Houston.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.