Resolute Energy has closed the sale of its Gardendale assets in the Midland Basin of West Texas to a private party for a purchase price of $177.5 million.
The net proceeds of the sale will be used to repay $95 million under the company’s revolving credit facility, representing all amounts currently outstanding under that facility, although the facility will remain in place.
In connection with the sale, the borrowing base under the company’s revolving credit facility has been reduced by $20 million to $145 million. The remainder of the net proceeds of the sale will be used in a combination of cash held on the company’s balance sheet and repayment of a portion of the amounts outstanding under the company’s second lien term loan.
Petrie Partners and BMO Capital Markets acted as financial advisors to Resolute on the Gardendale asset sale transaction.