Sidley represented JPMorgan Chase Bank, N.A., as administrative agent and collateral agent, in connection with a new US$550 million Term Loan B credit facility for Southwestern Energy Company. The company used the net proceeds of the loans made under the new five-year facility to fund a portion of the purchase price for its acquisition of GEP Haynesville, LLC. Southwestern Energy’s obligations under the Term Loan B facility are secured on a pari passu basis by the same assets that secure its reserve-based revolving credit facility. This market-leading financing mechanism is understood to be the first widely-syndicated Term Loan B facility for an exploration and production company in several years.
The Sidley team was led by partner Herschel Hamner with support from senior managing associate Quan Lu and associates Forrest Brown, Dane Rupley, and Nick Kalina. Additional support was provided by partners Heather Palmer (Environmental), Eric Winwood (Employee Benefits and Executive Compensation), and Kevin Pryor (Tax), as well as partner Robert Stephens, senior counsel Jim Rice, and counsel Matt Walker (all Energy).