Sundance Energy gets $250 million five-year loan at 800 bps spread

By Susanna Moon

Chicago, April 11 – Sundance Energy Australia Ltd. received commitments for a $250 million five-year second-lien term loan at Libor plus 800 basis points, according to a 6-K filing with the Securities and Exchange Commission.

Sundance Energy obtained the term loan as part of the recently announced Eagle Ford acquisition from a syndicate of U.S.-based institutional investors, according to a company announcement.

Morgan Stanley Energy Capital Inc. is the lead arranger, bookrunner and administrative agent.

Proceeds will be used to retire the company’s term loan and revolving lending facility and for liquidity to begin development of the acquired assets.

The company said it expects to get a new syndicated revolver at closing.

The term loan is expected to close at the same time as the acquisition.

The new loan “extends maturities into the second quarter of 2023,” according to Eric McCrady, managing director and chief executive officer.

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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