Surge repays revolver, buys back notes, cutting debt by $424 million

By Marisa Wong

Los Angeles, Oct. 25 – Surge Energy US Holdings Co. announced it repaid its revolving credit facility and repurchased some of its senior notes.

Surge fully repaid its revolver in October, according to a press release.

The primary usage of the outstanding debt on the credit facility was for two acquisitions in 2021. The total acquisition consideration was $457.5 million at the time of each closing. The outstanding debt on the credit facility at year-end 2021 was $355 million.

Additionally, the company has further reduced debt through partial repurchases of its senior notes due 2026 and senior notes due 2027. Through Oct. 24, the company has repurchased $69 million of face-value bonds, resulting in a total debt reduction of $424 million in 2022.

As a result of the debt reduction, the company’s trailing 12-month leverage ratio has also improved and is expected to be about 1.0 times by year-end 2022.

Surge Energy US is an oil and natural gas company based in Houston.

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