Laredo Energy VI, LP Completes Capitalization Plan to Support Multi-Year Development of Eagle Ford Assets
Laredo Energy VI, LP (“Laredo” or the "Company") announced today that it
closed a $200 million Senior Secured Delayed Draw Term Loan Facility
(the “Term Loan”) maturing on November 18, 2021.
Laredo used the proceeds from the Term Loan to pay down all borrowings
under the Company’s revolving credit facility and also for the
subsequent redemption of all outstanding Series A-1 Limited Partner
Interests. Commitments and funding secured via the Term Loan were
sourced from certain private funds managed by affiliates of Riverstone
Credit Partners and other third party financial institutions. This
financing transaction was solely led and arranged by Riverstone Credit
Partners.
“Laredo has the operational experience and financial flexibility to
execute a 20+ well drilling program in the Eagle Ford shale over the
next 18 months,” said Michael J. Wieland, President and CEO of Laredo.
“Our program will transition from the successful delineation of the
over-pressured, dry gas window of the Eagle Ford lying under our
acreage, to the early stages of efficiency-driven development. The
timing of the acceleration of our development plan is favorable given
recent upward movement in near term natural gas futures pricing and
Laredo’s advantageous positioning with close proximity to premium export
markets.”
Laredo currently operates 150 wells across its approximate 72,000 gross
acres in Webb County, Texas. Natural gas produced from this area by
Laredo and other nearby operators has access to several pipelines for
direct export to Mexico or delivery to LNG export terminals or domestic
industrial end users along the Gulf Coast.
Laredo Energy VI, LP is a Houston-based, natural gas exploration and
production company that operates in the dry gas window of the Eagle Ford
Shale. The Company seeks to significantly grow asset value through a
strategic and modern approach to drilling, completion, production and
marketing practices, leveraging the team’s depth of experience exploring
and operating in South Texas. For more information, please visit www.laredoenergy.com.
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Copyright Business Wire 2018
Source: Business Wire
(November 29, 2018 - 12:21 PM EST)
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