DLA Piper advises Linc Energy on $125m senior secured notes offering

DLA Piper has advised long-term client Linc Energy Ltd on the successful offering of $125m (£74.8m) 9.625 per cent due-2017 first-lien senior secured notes. The notes were issued by the company’s wholly owned subsidiaries Linc USA GP and Linc Energy Finance (USA), through which the company is engaged in the production, development, exploration and acquisition of crude oil and gas producing properties in the US.

The notes bear interest at 9.625 per cent per annum, payable semi-annually, and are due in 2017. The issue was part of a significant structuring of the issuer’s debt, and the transaction involved a pay-down of first-lien debt of the issuers, and replacement of their first-lien credit facilities with the notes.

The notes are secured by first priority liens on the issuers’ US-based oil and gas assets, and rank senior to the issuers’ existing 12.5 per cent senior secured notes that were issued in 2012. In addition to repaying debt, the proceeds of the fund raising will enable the company to undertake a Gulf Coast drilling programme focused on its extensive inventory of new well targets and low-cost recompletions to increase production and cash flows.

The DLA Piper team was led by Stephen Peepels, partner and head of Asia-Pacific capital markets, with support from Steven Weerts (tax) in Los Angeles, Tony Lopez (finance and projects) in London, and Glenn Reitman (corporate and securities) in Houston.