GE Unit Arranges Debt Facility for SND Consolidated Energy
GE Energy Financial Services closed a $200 million senior secured credit facility subject to a $135 million initial borrowing base for SND Consolidated Energy to refinance debt and fund oil and gas field development in East Texas and Louisiana.
GE Energy Financial Services — through GE Capital Corp. and GE Capital Markets, Inc. — served as administrative agent, sole lead arranger and sole bookrunner, and is providing $75 million of the initial borrowing base to SND, a privately held independent oil and gas exploration and production company based in Dallas, Texas. Morgan Stanley Capital Group Inc. is providing the remaining $60 million of the initial borrowing base.
SND owns and operates oil and gas production in Gregg, Rusk, Nacogdoches, Cherokee, and Angelina counties in Texas and in De Soto and Caddo parishes in Louisiana.
“This facility provides SND with near-term liquidity to initiate a well workover program expected to grow diversified and long-lived reserves,” said John Schaeffer, managing director and head of the oil and gas unit at GE Energy Financial Services. “These transactions provide value to our customers by filling a gap between conforming bank loans and the high-yield market.”
“This transaction also provides SND with required capital to develop additional reserves from our existing oil and gas assets,” stated L. Ali Sheikh, president and CEO of SND. “GE’s team strongly supported SND with initiative and flexibility for a timely closing.”