Sitio adds $175 million delayed-draw loan under bridge loan facility

By Wendy Van Sickle

Columbus, Ohio, July 13 – Sitio Royalties Corp. wholly owned subsidiary Sitio Royalties Operating Partnership, LP amended the 364-day bridge term loan it signed on June 24 to add an additional $175 million delayed-draw loan, according to an 8-K filed with the Securities and Exchange Commission.

The amendment was entered on July 8 and brings the total commitments to $425 million.

The delayed-draw loans may be used only to fund a portion of the purchase price of specified oil and gas properties.

The commitments terminate on the earliest of Aug. 8, funding of the loans, receipt by the company of net cash proceeds of certain debt and equity issuances, consummation of the acquisition without use of the loan proceeds or termination of the bridge loan agreement.

The facility matures on June 23, 2023, as previously reported.

Interest based on SOFR will have quarterly step-ups. The initial margin is 600 basis points. It moves up to 650 bps on Sept. 22, to 700 bps starting on Dec. 21, 2022 and then to 750 bps starting March 21, 2023.

A duration fee will be paid to the lender ranging from 50 bps to 100 bps.

Bank of America, NA is the administrative agent.

BofA Securities, Inc. is a joint lead arranger and the only bookrunner.

Barclays and KeyBank NA are joint lead arrangers.

The company also amended its revolving credit agreement to permit the additional borrowings.

Sitio is a shareholder returns-driven company focused on large-scale consolidation of high-quality oil & gas mineral and royalty interests across premium basins. The borrower is based in Denver.

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