Akin Gump Advises Tapstone Energy Noteholders In Company’s Restructuring
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(New York) – Tapstone Energy, LLC today announced it has concluded a comprehensive financial restructuring plan to recapitalize its balance sheet and fortify its liquidity by significantly reducing long-term debt and interest expense. A team from Akin Gump acted as legal advisor for Tapstone’s unsecured noteholders and new capital investors.
Highlights of the out-of-court transaction include:
- 100 percent of Tapstone’s existing traditional credit facility lenders agreed to exchange their outstanding secured indebtedness into a combination of a new four-year secured term loan of approximately $145 million and common equity in Tapstone.
- 99.5 percent of Tapstone’s existing 9.75 percent 2022 senior noteholders have agreed to exchange their existing unsecured notes into a new four-year unsecured term loan of approximately $5 million and common equity in Tapstone.
- Kennedy Lewis Investment Management, LLC is investing $50 million of new capital in the form of preferred equity in Tapstone to pursue acquisitive growth in the Mid-Continent region.
- By extinguishing approximately $450 million of principle debt, the transaction leaves Tapstone with over $60 million in liquidity, a current mark-to-market hedge book of approximately $55 million, a significantly deleveraged balance sheet, a dedicated team of investors and the flexibility to pursue growth through acquisitions.
The Akin Gump team advising the noteholders and new capital investors was led by partner Daniel Fisher, leader of the firm’s special situations practice, and financial restructuring partner Philip Dublin, and included financial restructuring counsel Kate Doorley, corporate partner Alan J. Feld and finance partners Fred Lee and Matt Bivona.
Akin Gump Strauss Hauer & Feld LLP is a leading international law firm with more than 1,000 lawyers and advisors in offices throughout the United States, Europe, Asia and the Middle East. Founded in 1945, the firm is proudly celebrating its 75th anniversary in 2020. #AkinGump75
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