Fieldwood updates offer prices on add-on first- and second-lien loans

By Sara Rosenberg

New York, Feb. 14 - Fieldwood Energy LLC set the offer price on its fungible $200 million add-on first-lien covenant-light term loan (BB-) due Sept. 25, 2018 at par, the tight end of the 99¾ to par talk, and tightened the offer price on its fungible $425 million add-on second-lien term loan (B-) to 101½ from talk of par ½ to 101, according to sources.

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 first-lien term loan has 101 soft call protection through March 31.

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

Closing is targeted for the week of Feb. 24.

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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