Permian Production Partners, LLC, an Affiliate of Edge Natural Resources LLC, Announces the Launch of Term Loan Syndication
Permian Production Partners, LLC (“PPP” or the “Company”) announced today the launch of the syndication of a $300 million first lien term loan with an interest rate of LIBOR plus 6.00% and expected maturity in May 2024. The Company plans to use net proceeds from the term loan for working capital, to repay existing indebtedness of its affiliate company, Four Corners Petroleum II, LLC, to pay a distribution to its parent company and for related fees and expenses. Amounts outstanding under the term loan may be prepaid at any time at the option of the Company, subject in the case of certain prepayments, to a make-whole premium in year 1 and a 102% and 101% premium in years 2 and 3, respectively.
Jefferies is the lead arranger and administrative agent for the term loan financing. Latham & Watkins LLP is legal counsel to Jefferies. Baker Botts L.L.P. is legal counsel to PPP in connection with the financing.
PPP is an onshore oil and gas company that owns mature oil assets on the Central Basin Platform in the Permian Basin. PPP is an affiliate under common control with Four Corners Petroleum II, LLC (“FCP2”).
FCP2 is a growth-oriented onshore oil and gas company based in Golden, Colorado. FCP2 was formed in 2016 by management, its lead sponsor, Edge Natural Resources LLC, and RedBird Capital Partners LLC, to purchase assets on the Central Basin Platform in the Permian Basin.
About Edge Natural Resources LLC
Edge Natural Resources LLC (“Edge”) is a Dallas-based energy private equity firm that invests in the small-cap North American upstream and oilfield services sectors. Edge makes $25-75 million control-oriented equity investments in partnership with best-in-class management teams that have an edge in their particular area of focus.
About RedBird Capital Partners LLC
RedBird is a North America based principal investment firm focused on providing flexible, long-term capital to help entrepreneurs grow their businesses. Based in New York and Dallas, RedBird seeks investment opportunities in growth-oriented private companies in which its capital, investor network and strategic relationships can help prospective business owners achieve their corporate objectives. RedBird’s private equity platform connects patient capital with business founders and entrepreneurs to help them outperform operationally, financially and strategically.