By Oil & Gas Financial Journal staff
Dynamic Offshore Resources LLC has entered into a new four-year, $750 million senior secured credit facility on July 7 with a syndicate of ten banks led by The Royal Bank of Scotland plc.
The new credit facility replaces the Houston-based private company’s previous $350 million facility which was due to expire in July 2012. The borrowing base has increased from $195 million to $300 million.
In conjunction with closing the new facility, Dynamic acquired the remaining minority equity interests in Bandon Oil and Gas LP and repaid the entire outstanding Bandon second lien debt. Bandon is now a wholly-owned borrowing base subsidiary of Dynamic.
Banks participating in the facility include The Royal Bank of Scotland, plc as Administrative Agent, Capital One, N.A. and Regions Bank as Co-Syndication Agents, Citibank and Natixis as Co-Documentation Agents, as well as Deutsche Bank, UBS, Credit Suisse, Frost Bank and IBERIABANK.
Citibank, Deutsche Bank, Credit Suisse, and Frost Bank come on board as new lenders.
“This new expanded credit facility reflects the significant growth that Dynamic has achieved over the last year as well as notable efforts to simplify and consolidate our organizational structure,” commented Matt McCarroll, president and CEO of Dynamic.
Growth
The company has been steadily increasing its presence in the US Gulf of Mexico since its founding in 2008 with a $500 million equity commitment from Riverstone Holdings LLC and management. The company has completed six acquisitions in the Gulf of Mexico since then.
On May 2, the company announced the most recent transactions. Two separate deals saw the company acquire Gulf of Mexico properties from foreign-domiciled owners exiting the GoM shelf for a combined purchase price of $42.5 million. The company has also acquired Gulf of Mexico shelf assets from Beryl Oil and Gas LP, Bayou Bend Petroleum, and Northstar Exploration and Production Inc.
From January to April of this year, the company has jumped from No. 35 to No. 20 in the OGFJ100P list of top privately held companies based on production.
The company holds a 49% interest and serves as operator in The Bullwinkle field, about 150 miles southwest of New Orleans in the Gulf of Mexico in Green Canyon Block 65. It is positioned in 1,353 feet of water, currently produces 4,000 boe/d, and represents the company’s first asset located in the GoM deepwater. Superior Energy Services holds the remaining 51% interest.
The two companies acquired the field and related infrastructure from Shell in February 2010.
