Templar Energy says agreement reached on comprehensive restructuring

By Wendy Van Sickle

Columbus, Ohio, Aug. 12 – Templar Energy LLC said it has reached an agreement with holders of over 82% of its second lien debt, 100% of its equity holders and 100% of its first lien reserve-based lenders on the terms of a financial restructuring

The restructuring will result in the extinguishment of $1.45 billion in second lien debt, a new equity investment of $365 million and an amended reserve-based lending credit facility with a $600 million borrowing base, the company said in a statement Friday.

"Management is extremely pleased with the outcome of the company's negotiations with its lenders and the terms of the contemplated restructuring, which significantly deleverages the company's balance sheet and will allow Templar to continue to operate seamlessly in a lower commodity price environment with no impact on its customers and vendors,” David D. Le Norman, Templar president and chief executive officer, stated in the release.

“We will work over the next several weeks to gain support from the rest of the second lien lenders in order to implement this transaction expediently on an out-of-court basis.”

Templar Energy is an Oklahoma City-based exploration and production company.

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