Northern Oil and Gas launched a newly amended and expanded $800 million senior secured revolving credit facility, with Wells Fargo Securities serving as left lead arranger, bookrunner and administrative agent.

Wells Fargo Securities has obtained lender commitments to the credit facility for substantially more than $800 million to date, subject to customary closing conditions.

Northern Oil and Gas concurrently launched a consent solicitation seeking consents from holders of at least a majority of its outstanding 8.50% senior secured second lien notes due 2023 to amend the indenture governing the notes. The consent solicitation is underpinned by strong support from a substantial portion of holders of the outstanding Notes. In addition

Other features of the facility and notes include:

  • The proposed amendments to the indenture will, among other things, allow for expansion of the credit facility and provide materially greater flexibility for capital allocation
  • The $800 million credit facility will provide substantially enhanced liquidity to support the continued consolidation of non-operated assets in the Williston Basin
  • The new credit facility will also provide greatly expanded capability to retire up to $200 million of additional notes in the future, subject to customary retirement conditions
  • Pro forma for all fees and transaction costs, Northern expects a decrease in total debt upon closing of the credit facility and completion of the consent solicitation and related transactions
  • Northern expects substantial reductions in fixed charges post-transactions

“Despite an incredibly challenging backdrop for the industry and the bank lending market, the oversubscription of commitments to expand our revolver are a testament to the strength of our underlying producing asset base and excellent hedging program,” said Northern president, Nick O’Grady. “Upon successful consent, Northern will exit this transaction better positioned for debtholders and shareholders alike, with less net debt, materially lower fixed charges as well as increased free cash flow, and in a position to return capital to its shareholders.”

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.