| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers S > Headlines for Shoreline Energy LLC > News item |
Shoreline Energy cancels auction, names lender entity winning bidder
By Caroline Salls
Pittsburgh, Jan. 20 – Shoreline Energy LLC will ask the U.S. Bankruptcy Court for the Southern District of Texas to approve the sale of its assets to an entity formed by second-lien lender Highbridge Capital Management LLC after no other qualifying bids were received, according to a notice filed Friday.
The Jan. 23 auction has been cancelled.
As previously reported, affiliates of second-lien lender Highbridge Capital Management LLC and the first-lien lenders agreed on the basic terms of a sale process for substantially all of the assets of the debtors.
In consideration for the assets, the purchaser and oil and gas hedging agreement party Morgan Stanley Capital Services LLC agreed to submit a credit bid of the outstanding amount under the company’s debtor-in-possession credit agreement, plus an amount equal to $115 million less the amount of claims bid under the DIP credit agreement under a first-lien credit bid, plus $1.5 million in cash.
The purchaser’s capital structure will include a $40 million 4.5-year first-lien multi-draw term loan facility that will bear interest at a rate equal to Libor plus 700 basis points with a 1% Libor floor and carry a 2% original issue discount, a $35 million five-year second-lien term note, which will bear interest at Libor plus 600 bps with a 1% Libor floor, preferred A equity with zero coupon in the face amount of $60 million, preferred B equity with zero coupon in the face amount of $60 million and common equity.
The sale hearing is scheduled for Feb. 10.
Houston-based Shoreline is a privately owned oil and gas exploration and production company The company filed bankruptcy on Nov. 2 under Chapter 11 case number 16-35571.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.