Daily News: January 8, 2018

Cortland Capital Upsizes Legacy Facility to $400MM


Legacy Reserves amended its second lien term loan with Cortland Capital Market Services as administrative and second lien collateral agent.

According to a related 8-K filing, GSO Capital Partners is a lender for the transaction..

The new arrangement is intended to assist Legacy in its repurchasing of its 6.625% senior notes from Fir Tree Partners. It increased the amount of aggregate commitments from $300 million to $400 million, extended the availability of borrowings under the loan to October 25, 2019, relaxed the asset coverage test from 1.0x to 0.85x during 2018 and paid associated fees. Legacy will have approximately $339 million drawn under the loan after the repurchasing, leaving approximately $61 million of remaining availability.

Paul T. Horne, chairman of the board, president and CEO of Legacy’s general partner, commented, “This opportunity to reduce total debt outstanding and gain meaningful voting control of our senior notes marks another great stride in improving Legacy’s financial position in an otherwise difficult market.”