American Energy – Woodford lines up $140 million revolver with MUFG

New York, May 27 – American Energy – Woodford, LLC said it has received a commitment for a new revolving credit facility from MUFG Union Bank, NA with an initial borrowing base of $140 million.

MUFG Union has agreed to fully underwrite the revolver.

The new loan is part of a series of transactions announced by American Energy – Woodford.

The company has also begun an exchange in which it is offering new 12% second-lien notes due 2020 for its existing 9% senior notes due 2022.

The company will issue $700.00 principal amount of the new notes for each $1,000 principal amount of the existing notes that are tendered, including an early participation consideration of $50.00 principal amount of new notes per $1,000 of existing notes that will only be paid to those who tender by the early deadline of 5 p.m. ET on June 8.

American Energy – Woodford is also soliciting consents to ament the indenture of the existing notes. The proposed changes will eliminate or amend substantially all of the restrictive covenants and reporting requirements, and modify certain events of default and various other provisions.

Completion of the exchange and consent solicitation is subject to conditions including the receipt of consents from holders of 85% of the existing notes, the tender of at least 85% of the existing notes, the company entering into a new $140 million revolving credit facility, receipt of $100 million in equity contributions from American Energy – Woodford’s sponsors and entry into an intercreditor agreement.

American Energy – Woodford said that holders of more than a majority of the existing notes have agreed to tender their notes and deliver consents.

Board approval, including support of the largest equity sponsor, has been given for the additional equity.

American Energy – Woodford, based in Oklahoma City, is an oil and natural gas company focused on the Woodford and Mississippi Lime plays in northern Oklahoma. It is affiliated with American Energy Partners, LP, a company founded by Aubrey K. McClendon.

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