SilverBow will draw on revolver for Sundance, SandPoint acquisitions

Chicago, April 14 – SilverBow Resources, Inc. will partially fund the cash considerations for acquisitions announced on Thursday with draws under its revolving credit facility, according to a press release.

SilverBow said that it is purchasing Sundance Energy, Inc. for $354 million, split between $255 million in cash and $129 million value of its common stock. The company announced at the same time that it is buying SandPoint Operating, LLC for $71 million, with $31 million of that total in cash and $40 million in stock.

The Sundance acquisition is expected to close in the third quarter of 2022, and the SandPoint transaction is expected to close in the second quarter of 2022.

SilverBow announced on Wednesday in an 8-K filing with the Securities and Exchange Commission that it had redetermined its borrowing base at $525 million on a senior secured credit agreement, raised from $460 million.

In the Thursday press release, the company said that it expected to upsize the borrowing base amount and will announce that in conjunction with the closing of both transactions.

SilverBow is a Houston-based oil and gas exploration and production company.

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