Clayton Williams Energy announces $350m Term Loan from funds managed by Ares Management
Clayton Williams Energy, Inc. announced today that it has entered into a credit agreement with certain funds managed by Ares Management, L.P. so that the funds will make secured term loans to the Clayton in the principal amount of $350 million.
Clayton Williams Energy, Inc. has also has agreed to issue to the Lenders warrants to purchase 2.25 million shares of the company’s common stock at a price of $22.00 per share with rights to appoint two members to the company’s board of directors. Proceeds from this transaction will be used to fully repay the company’s outstanding indebtedness under its revolving credit facility and provide additional liquidity to fund the company’s operations and future development. Closing of this transaction is expected to occur on or before March 31, 2016.
Concurrently, the company announced an amendment to its bank revolving credit facility to reduce lender commitments to $100 million and ease financial covenants, among other changes. The amendment will be effective upon closing of the secured term loan transaction.
Mel Riggs, President of Clayton Williams Energy, said:
“Today’s announcement marks the successful conclusion of our company’s review of strategic alternatives. This transaction provides the liquidity we need to support our continuing operations and preserve our large core acreage positions in the Delaware Basin and Eagle Ford for future development and value creation. We are excited about building on this relationship with Ares Management.”
Further commentary on this transaction will occur during the company’s Year End and Q4 2015 financial results conference call on March 10, 2016. Additional details regarding the new credit agreement and amendment to the company’s bank revolving credit facility will also be included in a Current Report on Form 8-K to be filed by the company.
Goldman Sachs served as sole arranger and bookrunner, and Stephens Inc. advised the Lenders. Vinson & Elkins served as legal advisor to the company, and Kirkland & Ellis LLP served as legal advisor to the Lenders.
Country news
-
-
March 10, 2016
Hawaii utility cancels contracts with renewable developers
Hawaii Electric Light Company (HELCO) has terminated the 20 year power purchase agreement (PPA) for the 30 MW Hu Honua bioenergy plant. The PPA was approved by the Public Utilities Commission in December 2013. Read more -
March 08, 2016
Morgan Stanley raises US$3.6 Bn for second global infra fund and $2.2 Billion Co-investment Club
Morgan Stanley Infrastructure has recently announced that it has raised US$3.6 billion for North Haven Infrastructure Partners II (NHIP II), and has also assembled a co-investment club with a nominal amount of up to US$2.2 billion achieving a total amount of US$5.8 billion. Read more -
March 08, 2016
San Diego Gas & Electric (SDG&E) seeks 140 MW of renewable energy capacity
San Diego Gas & Electric (SDG&E) has announced it is seeking up to 140 megawatts (MW), of new "preferred energy resources," including energy storage, renewable energy, distributed generation, energy efficiency and demand response. Read more -
March 07, 2016
Florida’s Seminole Electric seeks up to 1,000 MW of capacity
US company Seminole Electric Cooperative has launched a request for proposals (RFP) to provide up to 1000 megawats (MW), which is scheduled to start as early as June 1, 2021. Read more -
March 04, 2016
Geronimo Energy sells Minnesota Community Solar Garden developments to BHE Renewables
Geronimo Energy, LLC has announced the sale of its second portfolio of Minnesota Community Solar Garden developments to BHE Renewables, LLC, a subsidiary of Berkshire Hathaway Energy. Read more
