Sundance Energy Australia Limited closed a debt refinancing with Morgan Stanley Bank and Morgan Stanley Capital Group.
The transaction retires fully Sundance’s current revolver and second lien term loan to provide $250 million of new committed debt capacity. The new facility includes a $300 million senior revolving credit facility with $75 million available at closing of which $25 million was drawn at closing and a $175 million senior term loan facility of which $125 million was drawn at closing and $50 million will be in the form of an undrawn contingent commitment.
The RBL has a 5 year term and bears interest at LIBOR plus 2 to 3 percent depending on the amount drawn. The term loan bears interest at LIBOR plus 7 percent with a 1 percent LIBOR floor. Both the RBL and term loan are secured by a first lien on substantially all of the company’s assets and have customary financial covenants.
GMP Securities acted as the sole Financial and Structuring Advisor to Sundance as part of the transaction.
Sundance Energy Australia Limited is an Australian-based, independent energy exploration company, with a wholly owned U.S. subsidiary, Sundance Energy, located in Denver.