HOUSTON (June 17, 2015) – Bracewell & Giuliani LLP advised Venoco, Inc. in a new $75 million term loan facility with Deutsche Bank AG. The facility was fully drawn at closing and matures in December 2017, but is subject to acceleration in certain circumstances.
Venoco used the proceeds from the new facility to repay all amounts outstanding under its prior term loan facility entered into in April 2015, and the prior facility was then terminated. Bracewell also advised Venoco in the prior facility.
The prior term loan facility was part of $250 million of new financings consisting of a private issuance of $175 million of new 12 percent first lien senior secured notes in addition to the $75 million of term loan.
Simultaneously with the prior facility, $194 million in principal of and accrued interest on Venoco’s existing 8.875 percent senior notes due 2019 were exchanged for second lien senior secured notes at 77.5 percent. The second lien notes initially pay interest, at Venoco’s option, in the form of payment-in-kind at 12.00 percent or cash interest at 8.875 percent for up to 24 months and will pay cash interest at 8.875 percent thereafter.
Bracewell attorneys working on the transaction included:
Partners: Robin J. Miles and Laura S. Martone
Associates: Jeris Diana Brunette and Tara S. Moss