NGP Capital Resources Co. (Nasdaq: NGPC) has funded a $14 million participation in a $180 million second lien term loan to a Houston-based, privately owned, independent oil and gas E&P company focused in the Gulf Coast region.
Proceeds from the term loan were used to acquire producing oil and gas properties in South Louisiana. The term loan was issued at a 3% discount, earns interest at the greater of 10.25% or LIBOR + 9% per annum and matures on March 27, 2019.
"We are very pleased to participate in this transaction. The management team of this company has an excellent reputation in the industry and a solid track record of redeveloping legacy fields in South Louisiana, similar to the strategy they intend to pursue with this acquisition. This investment increases our total year-to-date new investment activity to $98 million, and our total investment portfolio to approximately $225 million," Steve Gardner, the company's President and CEO, said in the release.
NGP Capital Resources Co. is a business development company specializing in investments in small and mid size and middle market companies. The company is based in Houston.