W&T Offshore pushes out timing on $1.3 billion facility launch

By Sara Rosenberg

New York, March 21 - W&T Offshore Inc. now anticipates holding a general syndication bank meeting to launch its proposed $1.3 billion senior secured credit facility either next week or sometime in early April, as opposed to the previously targeted date of March 22, according to a market source.

The March 22 date was always said to be fluid as the syndicate is waiting on ratings for the deal and the company was recently in the process of announcing earnings.

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.

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.

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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