Samson Investment to launch $2.25 billion revolver on Thursday

By Sara Rosenberg

New York, Dec. 6 - Samson Investment Co. has set a bank meeting for Thursday morning to launch its proposed $2.25 billion senior secured revolving credit facility, according to sources.

J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the lead arrangers on the deal and bookrunners with Bank of America Merrill Lynch, Barclays Capital Inc., BMO Capital Markets, Citigroup Global Capital Markets Inc., Credit Suisse Securities (USA) LLC, RBC Capital Markets LLC and Mizuho Securities USA Inc.

Proceeds will be used to help fund the buyout of the company by Kohlberg Kravis Roberts & Co. LP, Natural Gas Partners, Crestview Partners and Itochu Corp.

Other funds for the transaction will come from a $2.25 billion high-yield bond offering that is backed by a commitment for a $2.25 billion bridge loan.

Syndication of the bridge loan is set to kick off with a conference call at 4 p.m. ET on Wednesday.

Under the terms of the agreement, the investor group will acquire all of Samson's assets for $7.2 billion with the exception of its onshore Gulf Coast and offshore deep water Gulf of Mexico assets, which will continue to be owned by the Schusterman family.

Closing is expected by year-end, subject to regulatory approval and customary conditions.

Samson is a Tulsa, Okla.-based private exploration and production company.

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