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Lilis Energy closes on $140 million financing via Wilmington Trust
By Tali Rackner
Minneapolis, April 27 – Lilis Energy, Inc. closed on $140 million in new financings Wednesday with Wilmington Trust, NA as administrative agent, according to a press release.
The financings include a $125 million convertible second-lien term loan facility funded by Vӓrde Partners, Inc. and an additional $15 million in the form of incremental term loans under Lilis’ existing first-lien credit facility.
The $125 million Vӓrde facility consists of an $80 million convertible second-lien term loan, which was fully drawn and funded at closing, and a $45 million delayed-draw term loan to be funded from time to time on or before Feb. 28, 2019. The delayed-draw term loan is committed to Lilis for leasing activity within defined parameters and available either in a single draw or in multiple draws to fund future acreage acquisitions.
Each tranche will bear interest at a rate of 8.25%, compounded quarterly in arrears and payable only in-kind by increasing the principal amount of the loans by the amount of the interest due on each interest payment date, according to an 8-K filing with the Securities and Exchange Commission.
The loans mature on April 26, 2021.
The Vӓrde term loans are convertible, subject to certain terms and conditions, at $5.50 per share. The new $15 million term loan was structured as an amendment to the company’s existing first-lien term loan facility.
Proceeds will be used to repay existing loans, including any accrued and unpaid interest, pay the fees, expenses and transaction costs of the transactions and finance the company’s working capital needs.
Lilis is a San Antonio-based independent oil and gas exploration and production company.
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