Templar closes comprehensive restructuring with full lender support

By Wendy Van Sickle

Columbus, Ohio, Sept. 21 – Templar Energy LLC closed a comprehensive restructuring transaction on a fully consensual out-of-court basis, having obtained consent from 100% of each of its second-lien lenders, equity holders and first-lien reserve-based lenders, the company said in a press release.

The transaction results in the extinguishment of $1.45 billion of second-lien debt, a new equity investment of $365 million and an amended reserve-based lending credit facility with a $600 million borrowing base, the company said.

Under the restructuring, second-lien lenders received about $133 million of cash and 45% of the equity in reorganized Templar after dilution and were eligible to participate in a fully-backstopped rights offering of participating preferred equity in reorganized Templar.

In total, the company raised $365 million of cash in the form of new participating preferred equity, including $145 million from certain legacy equity holders, the proceeds of which were used to fund the cash consideration to each second-lien debtholder, significantly pay down Templar's reserve-based facility, pay transaction costs and expenses and fund the company's business plan.

“Management is extremely pleased with the unanimous support it has received from all its constituents, enabling the company to seamlessly implement this deleveraging transaction and leave the company with significant liquidity, operational flexibility and poised to execute on attractive growth opportunities," David D. Le Norman, Templar president and chief executive officer, stated in the release.

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

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