Laredo Energy VI closed a $200 million senior secured delayed draw term loan facility with certain private funds managed by affiliates of Riverstone Credit Partners and other third party financial institutions. Riverstone solely led and arranged the transaction.
Laredo used the proceeds from the term loan to pay down all borrowings under its revolving credit facility and also for the subsequent redemption of all outstanding Series A-1 limited partner interests.
The term loan will mature on November 18, 2021.
“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.”
Based in Houston, Laredo Energy VI is a natural gas exploration and production company that operates in the dry gas window of the Eagle Ford Shale. It currently operates 150 wells across approximate 72,000 gross acres in Webb County, TX.
