Surge Energy’s $700 Million Bond Offering

Simpson Thacher represented Moss Creek Resources Holdings, Inc. (“Moss Creek Resources”), a wholly owned subsidiary of Surge Energy US Holdings Company, in connection with its inaugural bond offering of $700 million aggregate principal amount of 7.5% Senior Notes due 2026 pursuant to Rule 144A and Regulation S, which closed on January 18, 2018.

Moss Creek Resources intends to use the net proceeds to repay all outstanding borrowings under, and terminate, its existing term loan facility, repay outstanding borrowings under its revolving credit facility, pay related fees and expenses of such transactions and, to the extent there are any remaining proceeds, use for general corporate purposes.

Moss Creek Resources is an independent oil and natural gas company focused on the development, exploitation, production and acquisition of oil and natural gas reserves in the Midland Basin of West Texas. Moss Creek Resources’ assets span Howard and Borden Counties, and its wells target the Wolfcamp A, Spraberry and Wolfcamp B shale formations.

The Simpson Thacher team included, among others, Ken Wallach (Picture), Hui Lin, Sung Bum Cho, Nathaniel Bascom and Kenneth Koo (Capital Markets); Robert Rabalais and Nathaniel Bascom (Credit); Jonathan Cantor and Brian Mendick (Tax); Monisha Bhayana (Executive Compensation and Employee Benefits); and Adeeb Fadil and Timothy Mulvihill (Environmental).

Paul Hastings advised BMO Capital Markets – acting as representative for the initial purchasers – with a team including Paris Theofanidis (Finance), Doug Getten (Securities and Capital Markets), Will Burns, Jason Ewart, Cecilia Wang, Bianca Lee and Stephen Perry.

Involved fees earner: Kenneth Wallach – Simpson Thacher & Bartlett; Hui Lin – Simpson Thacher & Bartlett; Sung Bum Cho – Simpson Thacher & Bartlett; Nathaniel Bascom – Simpson Thacher & Bartlett; Robert René Rabalais – Simpson Thacher & Bartlett; Jonathan Cantor – Simpson Thacher & Bartlett; Brian Mendick – Simpson Thacher & Bartlett; Monisha Bhayana – Simpson Thacher & Bartlett; Adeeb Fadil – Simpson Thacher & Bartlett; Timothy Mulvihill – Simpson Thacher & Bartlett; Paris Theofanidis – Paul Hastings; Cecilia Wang – Paul Hastings; Bianca Lee – Paul Hastings; Doug Getten – Paul Hastings; Will Burns – Paul Hastings; Jason Ewart – Paul Hastings; Stephen Perry – Paul Hastings;

Law Firms: Simpson Thacher & Bartlett; Paul Hastings;

Clients: BMO Capital Markets; Moss Creek Resources Holdings, Inc.;


Author: Ambrogio Visconti