Sheridan Production Partners downsizes term loan to $600 million

By Sara Rosenberg

New York, April 14 - Sheridan Production Partners reduced the size of its seven-year term loan to $600 million from $700 million as a result of last week's increase in pricing, according to a market source.

As was previously reported, pricing on the term loan is Libor plus 550 basis points, after flexing up from Libor plus 450 bps, with a 2% Libor floor and an original issue discount of the 981/2.

There is a step-down to Libor plus 450 bps if the company achieves public corporate ratings of B2/B or better.

UBS and JPMorgan are the lead banks on the deal.

Proceeds will be used to refinance an existing revolver. As a result of the downsizing, the revolver will stay at up to $400 million rather than getting paid down to $300 million.

Sheridan is a Houston-based oil and gas production company.

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