An additional $100 million of delayed draw term loans will be available to the company, subject to the satisfaction of customary conditions. The new credit facility will mature in five years and carries a floating interest rate of LIBOR, plus 7.75% (subject to a 1% LIBOR floor).
The company used approximately $161 million of the initial proceeds to repay and retire its bank credit facility led by Royal Bank of Canada, which was scheduled to mature in September 2018. Excess proceeds under the initial draw and additional availability under the new credit facility may be used for general corporate purposes, including, but not limited to, development of the company’s assets in the Williston Basin, future accretive acquisitions and potential purchases of the company’s outstanding unsecured senior notes and common shares.
“This new credit facility extends our debt maturities and significantly expands our available liquidity,” stated Northern’s interim CEO and CFO Tom Stoelk. “With this enhanced financial flexibility we intend to continue to grow our oil-focused asset base in the Williston Basin while seeking additional accretive transactions to increase shareholder value.”
Northern Oil and Gas is an exploration and production company with a core area of focus in the Williston Basin Bakken and Three Forks play in North Dakota and Montana
TPG Sixth Street Partners is the global credit and credit-related investment platform partnered with TPG.