Permian Production Partners launched the syndication of a $300 million first lien term loan with an interest rate of LIBOR + 6.00% and expected maturity in May 2024. Jefferies is lead arranger and administrative agent for the financing.
The company plans to use net proceeds from the term loan for working capital, to repay existing indebtedness of its affiliate company, Four Corners Petroleum II, to pay a distribution to its parent company and for related fees and expenses. Amounts outstanding under the term loan may be prepaid at any time at the option of the company, subject in the case of certain prepayments, to a make-whole premium in year one and a 102% and 101% premium in years two and three, respectively.
Latham & Watkins is legal counsel to Jefferies. Baker Botts is legal counsel to PPP in connection with the financing.
PPP is an onshore oil and gas company that owns mature oil assets on the Central Basin Platform in the Permian Basin.
