Midstates Petroleum gets $620 million unsecured bridge loan commitment

By Sara Rosenberg

New York, April 4 - Midstates Petroleum Co. Inc. has received a commitment for a $620 million one-year unsecured bridge loan to help fund its acquisition of producing properties as well as developed and undeveloped acreage in the Anadarko Basin in Texas and Oklahoma, according to an 8-K filed with the Securities and Exchange Commission on Thursday.

Also, the company plans to amend and restate its revolving credit facility to increase the borrowing base to $425 million, revise the maturity to five years and allow for the issuance of the new debt.

Morgan Stanley Senior Funding Inc. and SunTrust Robinson Humphrey Inc. are the lead banks on the financing.

Initial pricing on the bridge loan is expected at Libor plus 750 basis points to 800 bps, based on ratings, with a 1.5% Libor floor.

The company plans to permanently finance the acquisition by raising $725 million to $750 million, of which $100 to $125 million would be equity, and the balance would be debt.

Under the agreement, the company is buying the properties from Panther Energy LLC, and its partners Red Willow Mid-Continent LLC and LINN Energy Holdings LLC, for $620 million in cash.

Closing is expected on or about May 31, subject to customary conditions.

Midstates Petroleum is a Houston-based independent exploration and production company.

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