Simpson Thacher is representing Templar Energy LLC and its affiliates (“Templar”) in connection with a financial restructuring that will result in the extinguishment of $1.45 billion in second lien debt, a new equity investment of $365 million and an amended RBL credit facility with a $600 million borrowing base.
Templar and a majority of its holders of second lien debt and of its equity entered into a restructuring support agreement (“RSA”) on July 15, 2016 which set forth the key terms of the restructuring and a timeline and process for its implementation. In addition, Templar has secured commitments from 100% of its existing first lien RBL lenders for an amended, post-restructuring, credit facility.
Templar has begun soliciting formal support for the restructuring plan from its lenders with the solicitation period to remain open until the end of August. The RSA contemplates that Templar may execute its restructuring plan on either a consensual out-of-court basis or through a prepackaged Chapter 11 proceeding. The restructuring plan is expected to be concluded by the end of the third quarter, if effectuated out of court, or by the end of the year, if effectuated through a prepackaged Chapter 11 proceeding.
Headquartered in Oklahoma City, Templar is an exploration and production company focused on investing primarily in the mature, liquids-rich producing basins in the Mid-Continent Region.
The Simpson Thacher team includes Sandy Qusba, Elisha Graff, Kathrine McLendon, Morris Massel, Edward Linden and Ariana Evarts (Restructuring and Bankruptcy); Bill Curbow, Jeongseok Jay Yu and B. Izzy Lubarsky (M&A); Matt Einbinder, Erland Modesto, Alex Lebow and Ana Maria Sanchez (Banking and Credit); Dave Azarkh and Tadashi Okamoto (Capital Markets); John Creed, Drew Purcell and John Torrenti (Tax); and Aimee Adler (ECEB). Summer Associates Chase Bentley, Avery Johnson, Matt Petrone and Ari Pruzansky also provided valuable assistance.