MINNEAPOLIS, Nov. 1, 2017
/PRNewswire/ -- Northern Oil and Gas, Inc. (NYSE American:
NOG) ("Northern" or the "Company") today
announced it has closed an agreement with TPG Sixth
Street Partners ("TSSP") for a new $400 million
first lien credit facility (the "new credit facility"). At
the closing, an initial amount of $300
million was funded – an additional $100 million of delayed draw term loans are
available to the Company, subject to the satisfaction of customary
conditions. The new credit facility matures in five years and
carries a floating interest rate of LIBOR, plus 7.75% (subject
to a 1% LIBOR floor).
The Company used approximately $161
million of the initial proceeds to repay and retire its bank
credit facility led by Royal Bank of Canada, which was scheduled to mature in
September 2018. Excess proceeds
under the initial draw and additional availability under the new
credit facility may be used for general corporate purposes,
including, but not limited to, development of the Company's assets
in the Williston Basin, future
accretive acquisitions, and potential purchases of the Company's
outstanding unsecured senior notes and common shares.
"This new credit facility extends our debt maturities and
significantly expands our available liquidity," stated Northern's
Interim CEO and CFO Tom Stoelk.
"With this enhanced financial flexibility we intend to
continue to grow our oil-focused asset base in the
Williston Basin while seeking
additional accretive transactions to increase shareholder value."
Richard Weber, Northern's Chairman of the Board, added, "We
welcome TSSP as a partner and look forward
to pursuing our strategic initiatives with their support. We
also look forward to continuing discussions with our bondholders
about potential transactions that would be beneficial for all of
our stakeholders."
"Northern has a great management team and an attractive
portfolio in the Williston Basin
and we are pleased at the opportunity to provide this strategic
capital," said Matt Dillard, Partner
at TSSP. "Led by our dedicated energy team based in Houston and San
Francisco, we are excited to partner with Northern, its
leadership team and board of directors and look forward to working
with them to create value for all stakeholders."
Evercore is serving as financial advisor to Northern Oil
and Gas, Inc. and Jones Day is
acting as legal counsel.
ABOUT NORTHERN OIL AND GAS,
INC.
Northern Oil and Gas, Inc. is an exploration and production
company with a core area of focus in the Williston Basin Bakken and Three Forks play in
North Dakota and Montana.
Find more information about Northern Oil and Gas, Inc. at
www.NorthernOil.com.
ABOUT TPG SIXTH STREET PARTNERS
TPG Sixth Street Partners ("TSSP") is the global credit and
credit-related investment platform partnered with TPG. Co-founded
in 2009 by Managing Partner Alan Waxman, TSSP has approximately
$21 billion in assets under
management. TSSP has a long-term oriented, highly flexible capital
base that allows it to invest across industries, geographies,
capital structures and asset classes. TSSP's investments are
typically complex to source, analyze and execute. Through its
dedicated energy team with investment professionals in Houston, San
Francisco and New York,
TSSP invests in, owns and partners with management teams to
acquire, develop and operate oil and gas assets. For more
information, please visit www.tpg.com/platforms/tssp.
SAFE HARBOR
This press release contains forward-looking statements regarding
future events and future results that are subject to the safe
harbors created under the Securities Act of 1933 (the "Securities
Act") and the Securities Exchange Act of 1934 (the "Exchange
Act"). All statements other than statements of historical
facts included in this release regarding the Company's financial
position, business strategy, plans and objectives of management for
future operations, industry conditions, and indebtedness covenant
compliance are forward-looking statements. When used in this
release, forward-looking statements are generally accompanied by
terms or phrases such as "estimate," "project," "predict,"
"believe," "expect," "continue," "anticipate," "target," "could,"
"plan," "intend," "seek," "goal," "will," "should," "may" or other
words and similar expressions that convey the uncertainty of future
events or outcomes. Items contemplating or making assumptions
about actual or potential future sales, market size,
collaborations, and trends or operating results also constitute
such forward-looking statements.
Forward-looking statements involve inherent risks and
uncertainties, and important factors (many of which are beyond the
Company's control) that could cause actual results to differ
materially from those set forth in the forward-looking statements,
including the following: changes in crude oil and natural gas
prices, the pace of drilling and completions activity on the
Company's properties, the Company's ability to acquire additional
development opportunities, changes in the Company's reserves
estimates or the value thereof, general economic or industry
conditions, nationally and/or in the communities in which the
Company conducts business, changes in the interest rate
environment, legislation or regulatory requirements, conditions of
the securities markets, the Company's ability to raise or access
capital, changes in accounting principles, policies or guidelines,
financial or political instability, acts of war or terrorism, and
other economic, competitive, governmental, regulatory and technical
factors affecting the Company's operations, products, services and
prices.
The Company has based these forward-looking statements on its
current expectations and assumptions about future events.
While management considers these expectations and assumptions to be
reasonable, they are inherently subject to significant business,
economic, competitive, regulatory and other risks, contingencies
and uncertainties, most of which are difficult to predict and many
of which are beyond the Company's control.
CONTACT:
Northern Oil and Gas, Inc.
Brandon Elliott, CFA
Executive Vice President,
Corporate Development and Strategy
952-476-9800
belliott@northernoil.com
TPG Sixth Street Partners – Media Relations
Abernathy MacGregor
Patrick Clifford / Pat Tucker
1-212-371-5999
pfc@abmac.com / pct@abmac.com
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SOURCE Northern Oil and Gas, Inc.