Sanchez gets $500 million first-lien revolver, second-lien term loan

By Marisa Wong

Madison, Wis., Nov. 26 - Sanchez Energy Corp. entered into a $250 million first-lien revolving credit facility and a $250 million second-lien term loan facility on Nov. 16, according to an 8-K filed Friday with the Securities and Exchange Commission.

Capital One, NA is the administrative agent, lead arranger and bookrunner of the first-lien facility, and Macquarie Bank Ltd. is the administrative agent, lead arranger and bookrunner of the second-lien facility.

The first-lien revolving credit facility matures Nov. 16, 2015 and has an initial borrowing base of $27.5 million, subject to periodic redeterminations.

Interest for the revolver is equal to Libor plus 250 basis points to 300 bps, depending on the utilization of the borrowing base. The commitment fee ranges from 37.5 bps to 75 bps, also depending on usage.

The second-lien credit agreement provides for an initial commitment of $50 million.

The term loan matures May 16, 2016 and is priced at Libor plus 850 bps.

As of Nov. 23, no draws were made under either facility, but the company said it plans to use future borrowings to fund capital expenditures and for general corporate purposes.

Sanchez is a Houston-based oil and natural gas exploration and development company.

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