RLPC: Fieldwood Energy sets price guidance on $2.63B loan

NEW YORK, Sept 9 Mon Sep 9, 2013 4:57pm EDT

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NEW YORK, Sept 9 (Reuters) - 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.

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.

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