Houston-based Fieldwood Energy LLC is proposing a $625 million add-on loan package to finance an acquisition that beefs up its offshore/onshore petroleum reserve assets that are already the largest in the Gulf Coast region.

A Fieldwood spokesman confirmed the company has proposed a $200 million add-on to its $700 million first-lien facility, and $425 million add-on to its $1.73 billion second-lien facility. The existing first-lien loan’s price is Libor plus 287.5 bps, while the second-lien is priced at Libor plus 712.5.

The first lien add-on offer is to be issued at par, and the second-lien at an original issue discount of 99 cents on the dollar.

Citigroup is the bookrunner. Commitments are due Feb. 18, according to the company.

According to a recent company statement, Fieldwood has obtained commitment financing from Citi, JPMorgan, Deutsche Bank (New York branch), Bank of America Merrill Lynch and Goldman Sachs.

Fieldwood, which was acquired in 2012 by Riverstone Holdings, has $2.63 billion in existing loans that helped finance an earlier acquisition last fall. In addition to the existing term loans, the company also has a $1.2 billion revolver.

The existing first-lien loans (including the revolver) are rated BB- by Standard & Poor’s and Ba2 by Moody’s Investors Service. The second lien carries a B- from S&P and a B2 by Moody’s.

Fieldwood received issued its first-time corporate ratings (B by S&P, B1 by Moody’s) in September after its $3.75 billion acquisition of Apache Corp.’s shallow Gulf of Mexico assets.

Fieldwood recently announced a $750 million acquisition of the Gulf Coast business of SandRidge Energy. The deal build its leasehold of assets to more than 650 exploration blocks, and net production of 125,000 barrels of oil equivalent per day, comprised of 54 percent oil.

The SandRidge deal also adds a Gulf Coast onshore division to Fieldwood’s business and also propels the company into deepwater exploration/production for the first time.


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