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Fieldwood cuts first-lien term loan to $700 million, upsizes revolver
By Sara Rosenberg
New York, Sept. 23 - Fieldwood Energy LLC downsized its five-year covenant-light first-lien term loan to $700 million from $900 million and upsized its five-year ABL revolver to $1.2 billion from $1 billion, according to sources.
Also, pricing on the first-lien term loan was reduced to Libor plus 287.5 basis points from Libor plus 300 bps and the original issue discount was changed to 99½ from 99, sources said.
The first-lien term loan still has a 1% Libor floor, 101 soft call protection for six months and amortization of 1% per annum.
In addition, pricing on the $1,725,000,000 seven-year second-lien term loan (size unchanged) was increased to Libor plus 712.5 bps from talk of Libor plus 600 bps to 625 bps, sources continued.
Furthermore, the original issue discount on the second-lien loan widened to 97 from talk of 98 to 99, and the call protection was sweetened to non-callable for one year, then at 103 in year two, 102 in year three and 101 in year four, from non-callable for one year, then at 102 in year two and 101 in year three.
As before, the second-lien term loan has a 1.25% Libor floor.
Recommitments are due at 5 p.m. ET on Tuesday, sources added.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Bank of America Merrill Lynch and Goldman Sachs Bank USA are the lead banks on the deal, with Citi the left lead on the first-lien term loan and JPMorgan the left lead on the second-lien loan.
Proceeds will be used to help fund the acquisition of Apache Corp.'s Gulf of Mexico shelf business for $3.75 billion.
Closing is expected on Sept. 30.
Fieldwood is a Houston-based acquirer and developer of conventional oil and gas assets.
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