Templar Energy defers loan interest payments, explores alternatives

By Caroline Salls

Pittsburgh, March 22 – Templar Energy LLC elected to exercise its grace period and defer making $11.8 million in interest payments due March 21 on a tranche of its $1.45 billion outstanding second-lien term loan due Nov. 25, 2020, according to a company news release.

Although it has sufficient liquidity to make these interest payments, Templar said it has elected to use the grace period as it explores alternatives for improving liquidity and its overall capital structure.

The decision to enter into the grace period does not constitute an event of default under the terms of the company’s credit agreements, the release said.

“It is no secret that all oil and gas related companies, whether they are upstream, midstream, or in the service sector of the industry, are challenged by the current, macro-economic environment we find ourselves immersed in,” chief executive officer David D. Le Norman said in the release.

“We have been working with all of our stakeholders to add liquidity and modify the capital structure of our company to be better equipped to handle the head winds created by the lower product prices we are receiving.”

Templar Energy is an Oklahoma City-based exploration and production company.

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