Oil and gas outfit Fieldwood Energy set price guidance on its new $2.625 billion loan backing its $3.75 billion purchase of Apache Corporation's Gulf of Mexico Shelf business, sources told Thomson Reuters LPC.
A $900 million, five-year first-lien term loan is guided at LIB+300, with a 1 percent Libor floor and a 99 original issue discount. The first-lien term loan will have 101 soft call protection for six months.
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A $1.725 billion, seven-year second-lien term loan is guided at LIB+600-625, with a 1.25 Libor floor, and an original issue discount of 98-99. The second-lien loan will include call protection of non-callable in year one, then 102, 101.
The first- and second-lien term loans are expected to be covenant-lite.
JP Morgan leads the second-lien term loan and Citi leads the first-lien term loan. Bank of America Merrill Lynch, Goldman Sachs and Deutsche Bank also serve as arrangers. Expected corporate family ratings are B1/B.
Houston-based Fieldwood Energy LLC is a portfolio company of Riverstone Holdings LLC. Fieldwood was formed to pursue conventional oil and gas acquisition and development opportunities throughout the United States.
(Editing By Jon Methven)