Southern Pacific Closes Senior Secured Notes Offering and New Credit Facility


Southern Pacific Resource Corp. (STP.TO) has closed its previously announced offering of notes, issuing $260 million Senior Secured Second Lien Notes at par, which will bear interest at a rate of 8.75% per annum and will mature five years from the date of issue.

Southern Pacific has used the net proceeds from the private placement, together with cash on hand, to retire its debt obligations under its existing US$272.2 million second lien term loan facility.

Concurrently, the company has closed a $75 million senior secured first lien revolving credit facility with a syndicate of financial institutions, representing a 150% increase over the company's previous $30 million revolver, and providing additional financial liquidity to the company.

STP shares dropped a penny to $1.23 on volume of around 179,000.

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This article appears in: Investing , Commodities

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