Gavilan lifts term loan to $450 million, flexes to Libor plus 600 bps

By Sara Rosenberg

New York, Feb. 24 – Gavilan Resources LLC updated its second-lien term loan size to $450 million from a revised amount of $350 million and an initial size at launch of up to $500 million, according to a market source.

Also, pricing on the loan was reduced to Libor plus 600 basis points from Libor plus 650 bps and the original issue discount was tightened to 99 from 98.5, the source said.

The term loan still has a 1% Libor floor and is non-callable for one year, then at 102 in year two and 101 in year three.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Natixis, Macquarie Capital (USA) Inc. and RBC Capital Markets are the leads on the deal.

Proceeds will be used to help fund the acquisition by Sanchez Energy Corp. and Blackstone Energy Partners of Anadarko Petroleum Corp.’s working interest in around 318,000 gross operated acres in the Western Eagle Ford for about $2.3 billion, subject to normal and customary closing conditions and purchase price adjustments.

Closing is expected this quarter, subject to customary conditions.

At the end of the fourth quarter of 2016, sales volumes from the properties being acquired totaled about 45,000 barrels of liquids per day and around 131 million cubic feet of natural gas per day.

© 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.