Laredo Petroleum, the Oklahoma-based oil and gas company in which PE firm Warburg Pincus invested in 2007, completed a sale of $350 million in senior unsecured notes. Bank of America Merrill Lynch, J.P. Morgan, and Wells Fargo Securities acted as joint book running managers for the sale. BMO Capital Markets was lead manager and Tudor, Pickering, Holt & Co. were co-managers.
TULSA, Okla., Jan. 24, 2011 — Laredo Petroleum, Inc. announced today the sale of $350 million of senior unsecured notes to eligible purchasers in the private placement market.
The notes, which carry a coupon rate of 9.5%, will mature on February 15, 2019, with interest payable on a semi-annual basis. Bank of America Merrill Lynch, J.P. Morgan, and Wells Fargo Securities acted as joint book running managers for the sale. BMO Capital Markets was lead manager and affiliates of the other banks in Laredo’s credit facility and Tudor, Pickering, Holt & Co. were co-managers. The offering settled and closed on January 20, 2011.
“We are extremely pleased by the strong interest and response in the marketplace,” said Randy Foutch, Laredo Chairman and Chief Executive Officer. “The proceeds from the sale will greatly enhance our financial flexibility.”
The net proceeds from the sale of the notes will be used to repay in full and retire the Company’s term loan facility, to pay down all loan amounts outstanding under its senior secured credit facility and for general working capital purposes.
The senior notes have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the senior notes, nor shall it constitute an offer, solicitation or sale in any jurisdiction in which, or to any person to whom, such an offer, solicitation or sale is unlawful.
About Laredo Petroleum
Laredo Petroleum, LLC is a rapidly growing independent oil and gas company with headquarters in Tulsa, Oklahoma. Laredo’s business strategy is focused on the exploration and development of oil and gas properties in the Mid-Continent and Permian regions of the United States. Formed with financial support from its management team and Warburg Pincus, Laredo is led by Randy Foutch and a highly talented team of technical professionals, many of whom worked together for many years successfully building Lariat Petroleum and Latigo Petroleum, among other industry experience. For additional information, please visit www.laredopetro.com.
About Warburg Pincus
Warburg Pincus is a leading global private equity firm with more than $30 billion in assets under management. Since its founding in 1966, the firm has provided over $4.5 billion of equity for companies around the world involved in oil and gas exploration and production, midstream, power generation, oilfield technology and related services, and alternative energy development. Warburg Pincus has raised 13 private equity funds which have invested more than $35 billion in over 600 companies in more than 30 countries, and its active portfolio of more than 110 companies is highly diversified by stage, sector and geography. The firm has offices in Beijing, Frankfurt, Hong Kong, London, Mumbai, New York, San Francisco, Sao Paulo, and Shanghai. For more information, please visit www.warburgpincus.com.
Forward Looking Statements.
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this presentation that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. The words “believe,” “expect,” “anticipate,” “plan,” “intend,” “foresee,” “should,” “would,” “could,” or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. However, the absence of these words does not mean that the statements are not forward-looking. These statements are based on certain assumptions made by the Company based on management’s expectations and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements.