Fieldwood launches $625 million in add-on first-and second-lien loans

By Sara Rosenberg

New York, Feb. 10 - Fieldwood Energy LLC launched with its call on Monday a fungible $200 million add-on first-lien covenant-light term loan due Sept. 25, 2018 and a fungible $425 million add-on second-lien term loan, according to sources.

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 financing, with Citi the left lead on the first-lien loan and JPMorgan the left lead on the second-lien loan.

Pricing on the add-on first-lien term loan is Libor plus 287.5 basis points with a 1% Libor floor and pricing on the add-on second-lien loan is Libor plus 712.5 bps with a 1.25% Libor floor, in line with the existing first-and second-lien term loans.

The offer price on the add-on first-lien term loan is talked at 99¾ to par and there is 101 soft call protection through March 31, sources said.

The add-on second-lien loan offer price is talked at par ½ to 101, sources continued.

Commitments are due on Feb. 18 and closing is targeted for the week of Feb. 24, sources added.

Proceeds will be used to help fund the $750 million acquisition of SandRidge Energy Inc.'s Gulf of Mexico and Gulf Coast business.

As part of the transaction, SandRidge will retain a 2% overriding royalty interest in two identified exploration prospects.

Fieldwood is a Houston-based acquirer and developer of conventional oil and gas assets.

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