Yuma Energy and privately held Davis Petroleum Acquisition completed their merger on October 26, 2016 in an all-stock transaction, with Davis becoming a wholly-owned subsidiary of Yuma.
In connection with the merger, Yuma entered into a credit agreement providing for a $75 million three-year revolving credit facility with SG Americas Securities as lead arranger and bookrunner and Société Générale as administrative agent. The agreement replaces Yuma’s existing credit agreement.
The initial borrowing base of the credit facility is $44 million and is subject to redetermination on January 1, 2017 as well as April 1 and October 1 each year. All of the obligations under the credit agreement and the guarantee of those obligations are secured by substantially all of the assets of Yuma and customary financial covenants have been made.
The combined company will be led by Sam L. Banks, Yuma’s president and CEO.
Northland Capital Markets, Euro Pacific Capital and ROTH Capital Partners acted as financial advisors to Yuma in the transaction. Jones & Keller, was legal counsel to Yuma. Porter Hedges was legal counsel to Davis.
Yuma Energy is an independent Houston-based exploration and production company focused on acquiring, developing and exploring for conventional and unconventional oil and natural gas resources.