W&T Offshore $1.3 billion credit facility general syndication launch expected in March

By Sara Rosenberg

New York, Feb. 27 - W&T Offshore Inc. is anticipating holding a general syndication bank meeting for its proposed $1.3 billion senior secured credit facility some time in March, with the syndicate currently waiting on ratings before firming up timing on the event, according to a market source.

TD Securities and Lehman Brothers are the lead banks on the deal, with TD the left lead.

The facility consists of a $500 million revolver, a $500 million term loan A and a $300 million term loan B, although the structure is still somewhat fluid at this point, the source said.

A meeting for existing bank lenders only took place on Feb. 16, during which the pro rata portion of the deal was presented to the group, the source added.

Proceeds from the credit facility will be used to help fund the acquisition of substantially all of the Gulf of Mexico conventional shelf properties of Kerr-McGee Oil & Gas Corp. Base merger consideration for the transaction is $1.3 billion in cash.

The transaction is expected to close during the second quarter, subject to regulatory review and customary closing adjustments and conditions.

W&T Offshore is a Houston-based oil and natural gas company.

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