HOUSTON--(BUSINESS WIRE)--Laredo Energy VI, LP (“Laredo” or the "Company") announced today that it closed a $200 million Senior Secured Delayed Draw Term Loan Facility (the “Term Loan”) maturing on November 18, 2021.
Laredo used the proceeds from the Term Loan to pay down all borrowings under the Company’s revolving credit facility and also for the subsequent redemption of all outstanding Series A-1 Limited Partner Interests. Commitments and funding secured via the Term Loan were sourced from certain private funds managed by affiliates of Riverstone Credit Partners and other third party financial institutions. This financing transaction was solely led and arranged by Riverstone Credit Partners.
“Laredo has the operational experience and financial flexibility to execute a 20+ well drilling program in the Eagle Ford shale over the next 18 months,” said Michael J. Wieland, President and CEO of Laredo. “Our program will transition from the successful delineation of the over-pressured, dry gas window of the Eagle Ford lying under our acreage, to the early stages of efficiency-driven development. The timing of the acceleration of our development plan is favorable given recent upward movement in near term natural gas futures pricing and Laredo’s advantageous positioning with close proximity to premium export markets.”
Laredo currently operates 150 wells across its approximate 72,000 gross acres in Webb County, Texas. Natural gas produced from this area by Laredo and other nearby operators has access to several pipelines for direct export to Mexico or delivery to LNG export terminals or domestic industrial end users along the Gulf Coast.
Laredo Energy VI, LP is a Houston-based, natural gas exploration and production company that operates in the dry gas window of the Eagle Ford Shale. The Company seeks to significantly grow asset value through a strategic and modern approach to drilling, completion, production and marketing practices, leveraging the team’s depth of experience exploring and operating in South Texas. For more information, please visit www.laredoenergy.com.