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Laredo Energy completes capitalisation plan to support development of Eagle Ford assets

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LNG Industry,

Laredo Energy VI, LP has released a statement announcing that it has closed a US$200 million senior secured delayed draw term loan facility, which will mature on 18 November 2021.

Laredo claims that it used the proceeds from the term loan to pay down all borrowings under its revolving credit facility and also for the subsequent redemption of all outstanding series A-1 limited partner interests. In the statement, Laredo claims that all commitments and funding secured via the term loan were sourced from certain private funds managed by affiliates of Riverstone Credit Partners, as well as other third party financial institutions. This financing transaction was solely led and arranged by Riverstone Credit Partners.

Michael J. Wieland, President and CEO of Laredo, said: “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. 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 favourable given recent upward movement in near term natural gas futures pricing and Laredo’s advantageous positioning with close proximity to premium export markets.”

Presently, Laredo operates 150 wells across its approximate 72 000 gross acres in Webb County, Texas, US. Gas produced from this area by the company and other nearby operators can access a number of different pipelines for direct export to Mexico or delivery to LNG export terminals or domestic industrial end-users along the Gulf Coast.

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