White Star Petroleum LLC has completed the previously announced acquisition of Mississippi Lime and Woodford Shale assets from Devon Energy Corp. (NYSE: DVN) for $200 million net of customary closing adjustments. The acquired assets include approximately 210,000 net acres in Central Northern Oklahoma, primarily located in Payne, Lincoln, Logan and Garfield Counties in Oklahoma, with most of the position held by production.
In conjunction, White Star entered into a senior secured, reserves-based revolving credit facility to amend and restate its existing credit facility. The amended and restated syndicated facility has a term of four years with initial commitments of $210 million. MUFG Union Bank NA and Capital One Securities Inc. served as joint lead arrangers and MUFG Union Bank NA is acting as administrative agent. Concurrently with the acquisition, White Star also extinguished substantially all of its 12.00% Second Lien Notes due 2020 through privately negotiated repurchases or exchanges for equity in White Star Petroleum Holdings LLC, White Star's parent company. Borrowings under the amended and restated syndicated facility together with proceeds from new equity financing led by The Energy & Minerals Group were used to fund the acquisition and the repurchases of second lien notes.
"The acquisition of Mississippi Lime and Woodford Shale assets from Devon more than doubles White Star's production, cash flow and acreage footprint. Our recapitalization initiatives reflect EMG's ongoing support for White Star and have significantly improved our leverage and liquidity profile," said Elliot J. Chambers, White Star's CEO.
White Star has hired Caleb G. Morgret as CFO, Jeffrey J. Zanotti as senior vice president, general counsel and secretary and Richard "Ricky" D. Pollot as chief accounting officer.
Morgret joined White Star on June 6, 2016. Morgret previously worked for Chesapeake Energy Corporation for four years, most recently as vice president and treasurer. Prior to Chesapeake, Morgret worked in investment banking, having served in various roles with J.P. Morgan, Mizuho Corporate Bank and UniCredit Group in London, UK, Frankfurt, Germany and Vienna, Austria. He earned an MBA from Southern Methodist University in 2016 and a BBA from the University of South Carolina in 2000. Morgret is a CFA charterholder.
Zanotti joined White Star on May 9, 2016. Zanotti previously worked for Seventy Seven Energy Inc. as assistant general counsel and assistant secretary. Prior to joining Seventy Seven Energy, Zanotti worked for Chesapeake. Zanotti began his legal career in the Dallas office of Jones Day. Zanotti earned a JD from Arizona State University in 2006 and a BA from Southern Methodist University in 2000.
Pollot joined White Star on June 6, 2016. Pollot previously worked for Mustang Fuel Corp. for 12 years, most recently as director of exploration and production accounting. Prior to joining Mustang Fuel, Pollot worked for Ernst & Young for 13 years. Pollot earned a BBA from the University of Oklahoma in 1991 and is a certified public accountant.
Porter Hedges LLP served as legal advisor to White Star. Sullivan & Cromwell LLP served as recapitalization transactions advisor.