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United States : No. 25-ranked Laredo Petroleum arranges two new bank credit facilities.

Privately held oil and gas company Laredo Petroleum Inc. has arranged two new bank credit facilities with Bank of America and Wells Fargo Energy Capital.

In the July issue of Oil & Gas Financial Journal, the company ranked No. 25 in the OGFJ100P ranking of privately held companies based on production within the US.

The first facility is a $500 million Revolving Credit Agreement, agented by Bank of America, with a group of 10 other banks participating. The facility matures in July 2014 and is subject to a semi-annual borrowing base which is currently set at $220 million with $102.5 million outstanding. The facility is secured by a 1st lien on all of the company s oil and gas properties and has the customary debt covenants which are tested on a quarterly basis. This new facility replaces a $300 million Revolving Credit Agreement that was set to mature in June 2012.

The second facility is a $150 million 2nd Lien facility, agented by Wells Fargo Energy Capital, with a group of five other banks participating. This facility matures in January 2015. The availability under this facility is currently capped at $100 million with $100 million outstanding. This facility is secured by a 2nd lien on all of the company s oil and gas properties and has similar quarterly covenants as the Revolving Credit Agreement.

Tulsa, Oklahoma-based Laredo Petroleum, formed with financial support from its management team and global private equity firm Warburg Pincus, is focused on the acquisition, exploration, and development of oil and gas properties in the Mid-Continent region of the US.

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Date:Jul 27, 2010
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