[Context: On January 17, Triloma EIG Energy announced investing in Rosehill Resources through offerings of $100m in senior second lien notes offering and $150m of preferred stock. Further details and related links are below.]
Triloma EIG Energy | Rosehill Resources
Triloma EIG Energy Income Funds Invest in Rosehill Resources Inc.
ORLANDO, FL–(Marketwired – January 17, 2018)– Triloma EIG Energy Income Fund and Triloma EIG Energy Income Fund – Term I (the “Funds”) announced their participation in the issuance of $100 million of Senior Secured Second Lien Notes (“Notes”) and $150 million of Series B Redeemable Preferred Stock (“Series B Stock”) issued by Rosehill Resources Inc. (“Rosehill”). Rosehill may issue up to an additional $50 million of its Series B Stock, at its election. The transaction was negotiated and structured by EIG on behalf of its managed investment vehicles and the Funds.
The Notes have an interest rate of 10% per annum to be paid quarterly in cash and were issued at 97% of par. The Series B Stock has a dividend rate of 10% per annum to be paid quarterly in cash, with the option for Rosehill to pay the dividend in kind up to 40% of the first four quarterly dividends.
Rosehill is an oil and gas exploration company with producing assets in Texas and New Mexico with its investment activity focused on the Delaware Basin portion of the Permian Basin. This investment funded Rosehill’s acquisition of 4,565 net acres and certain producing oil and gas properties in the Southern Delaware Basin which nearly doubles Rosehill’s total net acreage to 9,200 net acres. The proceeds may also be used by Rosehill to fund certain additional property acquisitions and capital development opportunities.