Sundance refinances with $175 million term loan, $300 million revolver

By Angela McDaniels

Tacoma, Wash., May 14 – Sundance Energy Australia Ltd. entered into a new credit facility that includes a $300 million senior secured revolving credit facility and a $175 million term loan, according to a company news release.

The facility is with Morgan Stanley Bank, NA and Morgan Stanley Capital Group Inc.

The transaction retires Sundance’s current revolver and second-lien term loan to provide $250 million of new committed debt capacity.

Of the $175 million term loan, $125 million was drawn at closing and $50 million will be in the form of an undrawn contingent commitment.

Of the $300 million revolver, $75 million was available at closing, and $25 million of that was drawn.

The term loan has a five-and-a-half-year term and bears interest at Libor plus 700 bps with a 1% Libor floor.

The revolver has a five-year term and bears interest at Libor plus 200 basis points to 300 bps depending on the amount drawn.

Both the revolver and term loan are secured by a first lien on substantially all of the company’s assets.

In conjunction with the transaction, the company plans to increase its hedged volumes of oil and gas production.

GMP Securities, LLC acted as financial and structuring adviser to Sundance.

Sundance is an oil and natural gas company based in Norwood, Australia, with a wholly owned U.S. subsidiary, Sundance Energy Inc., located in Denver.

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