Kodiak Oil & Gas gets $75 million second-lien loan via Wells Fargo

By Sara Rosenberg

New York, Dec. 2 - Kodiak Oil & Gas Inc. closed on a $75 million second-lien term loan due Nov. 24, 2014 that was led by Wells Fargo and has an initial commitment of $40 million, according to an 8-K filed with the Securities and Exchange Commission on Thursday.

Pricing on the loan is Libor plus 800 basis points with a 2.5% Libor floor.

There is call protection of 102 in year one and 101 in the years thereafter.

Proceeds from the loan, which was completed on Nov. 30, were used to help fund the acquisition of oil and gas properties located in North Dakota from Peak Grasslands LLC.

Other funds for the $110 million acquisition came from cash on hand and borrowings under the company's first-lien credit facility, which was amended.

Under the amendment, the borrowing under the existing credit facility was increased to $50 million from $20 million, the company gained permission to enter into the new second-lien term loan, the total debt to EBITDAX was changed to 4.0 to 1.0 through Dec. 31 and 3.75 to 1.0 thereafter, and a EBITDAX to interest expense covenant of at least 3.0 to 1.0 was added.

The amendment was also done on Nov. 30, and Wells Fargo is the agent on the deal.

Kodiak is a Denver-based energy company.

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