Falcon Minerals receives commitment for up to $500 million revolver

By Sarah Lizee

Olympia, Wash., June 4 – Falcon Minerals Corp. entered into a commitment letter on Sunday for an up to $500 million revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The revolver has an initial borrowing base of $115 million.

The debt commitment is being made in connection with Osprey Energy Acquisition Corp.’s definitive agreement to acquire the assets of Royal Resources from Blackstone Energy Partners and Blackstone Capital Partners. Upon closing of the business combination, Osprey will be renamed Falcon Minerals.

A portion of the revolver proceeds will be used to finance the cash portion of the consideration of the business combination.

Osprey will also use proceeds from a sale of 11.5 million shares of its class A common stock at $10.00 per share to finance the transaction.

At closing, Falcon Minerals will own mineral, royalty and over-riding royalty interests covering 251,000 gross unit acres in the Eagle Ford and Austin Chalk shales in Texas.

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