Northern Oil and Gas Inc. (NYSE: NOG) has closed an agreement with TPG Sixth Street Partners for a $400 million first lien credit facility.
At the closing, an initial amount of $300 million was funded—an additional $100 million of delayed draw term loans are available to the company. The new credit facility matures in five years and carries a floating interest rate of LIBOR, plus 7.75% (subject to a 1% LIBOR floor).
Northern used approximately $161 million of the initial proceeds to repay and retire its bank credit facility led by Royal Bank of Canada, which was scheduled to mature in September 2018.
Excess proceeds under the initial draw and additional availability under the new credit facility may be used for general corporate purposes, including, but not limited to, development of Northern’s assets in the Williston Basin, future accretive acquisitions, and potential purchases of its’ outstanding unsecured senior notes and common shares.
Evercore Inc. (NYSE: EVR) is serving as financial advisor to Northern Oil and Gas Inc. and Jones Day is acting as legal counsel.
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