Midstates Petroleum discloses liquidity transactions, debt up; LightSquared pricing widens

By Stephanie N. Rotondo

Phoenix, May 22 – With little else going on in the distressed debt arena on Friday – due to the long Memorial Day weekend – a trader said Midstates Petroleum Co. Inc. was “topical.”

Late Thursday, the Tulsa-based oil and gas producer announced several actions it had taken in an effort to shore up its liquidity, including wrapping up a private placement of $625 million of 10% second-lien notes.

Concurrently with that offer, Midstates exchanged about $280 million of 10¾% notes due 2020 and just over $350 million of 9¼% notes due 2021 for new 10% third-lien notes PIK notes due 2020.

The exchange was done at 80 cents on the dollar, the company said in a press release.

Last but not least, the company amended its revolving credit facility to provide covenant flexibility and to allow for the issuance of the second-lien notes and concurrent exchange. In amending the facility, the company’s borrowing base was reduced to $253 million.

All told, the transactions provided a “substantial” increase in liquidity, which came to $420 million.

On the news, a trader said Midstates’ debt “kind of traded up from the lows.”

LightSquared widened pricing on its $1.75 billion five-year first-lien term loan to Libor plus 875 bps PIK from Libor plus 775 bps PIK and left the 1% Libor floor and original issue discount of 97 unchanged, according to a market source.

© 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.