White Star Petroleum, LLC, announced yesterday that it has completed the previously announced acquisition of Mississippi Lime and Woodford Shale assets from Devon Energy Corporation for $200 million net of customary closing adjustments. The acquired assets include approximately 210,000 net acres in Central Northern Oklahoma, primarily located in Payne, Lincoln, Logan and Garfield Counties in Oklahoma, with most of the position held by production.
In conjunction with the Acquisition, White Star entered into a senior secured, reserves-based revolving credit facility to amend and restate its existing credit facility. The Amended and Restated Syndicated Facility, as it is called, has a term of four years with initial commitments of $210 million.
MUFG Union Bank N.A. and Capital One Securities, Inc. served as joint lead arrangers for the Amended and Restated Syndicated Facility and MUFG Union Bank, N.A. is acting as administrative agent.
Concurrently with the acquisition, White Star also extinguished substantially all of its 12.00% Second Lien Notes due 2020 through privately negotiated repurchases or exchanges for equity in White Star Petroleum Holdings, LLC, White Star’s parent company. Borrowings under the Amended and Restated Syndicated Facility together with proceeds from new equity financing led by The Energy & Minerals Group (EMG) were used to fund the acquisition and the repurchases of Second Lien Notes.
“The closing of today’s transactions represents a significant milestone for White Star and has transformed the company, positioning it for growth and continued value creation,” Elliot J. Chambers, White Star’s Chief Executive Officer commented.
“The acquisition of Mississippi Lime and Woodford Shale assets from Devon more than doubles White Star’s production, cash flow and acreage footprint. Our recapitalization initiatives reflect EMG’s ongoing support for White Star and have significantly improved our leverage and liquidity profile.”
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