Simpson Thacher represented Templar Energy LLC on a comprehensive restructuring transaction that closed on September 21, 2016 on a fully consensual out-of-court basis with consent from 100% of each of its second lien lenders, equity holders and first lien RBL lenders. The transaction results in the extinguishment of $1.45 billion in second lien debt in exchange for receipt by the second lien lenders of approximately $133 million in cash and 45% of the equity in reorganized Templar (after dilution), a new equity investment of $365 million from certain second lien lenders and certain legacy equity holders in the form of new participating preferred equity, and an amended RBL credit facility with a $600 million borrowing base.
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 included 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); Aimee Adler and Patricia Adams (ECEB); Townshine Wu (Funds); and Steven DeLott (Insurance); and Jeanne Annarumma (ERISA).