© 2017 The Texas Lawbook.
By Natalie Posgate
(Feb. 18) – Houston E&P company Gastar Exploration said Friday that it has secured $425 million in new financing from funds managed by affiliates of Ares Management, a Los Angeles-based investment firm.
The financing is comprised of a $250 million secured term loan, $125 million in secured convertible notes and an issue of $50 million in common stock. Gastar will use the money to repay its existing $70 million revolving credit facility and redeem its $325 million senior secured notes that are due in May 2018.
Both parties turned to some Houston lawyers from Latham & Watkins and Vinson & Elkins to work on the transaction.
Gastar hired V&E chairman Mark Kelly and fellow Houston partner Jim Prince to lead the client team on the deal. The transaction itself was led by corporate partner David Stone and finance partner Mark Brazzil, who received assistance from corporate associates Matthew Falcone, Andrew Schulte, Ryan Martin and David Bumgardner and finance associate Zach Rider. Dallas partner Wendy Salinas advised on tax matters and an attorney from the firm’s Washington, D.C. office worked on antitrust matters.
Ares hired Latham corporate partner Michael Chambers and a partner in Latham’s New York office to lead its end of the deal. They received assistance from Houston associates Joshua Pelfrey and Alice Parker and attorneys from the firm’s Los Angeles and New York offices. Tax partner Tim Fenn and associate James Cole and finance counsel Pamela Kellet also advised from Houston.
The closing of the transaction is expected this month. Seaport Global Securities served as Gastar’s financial advisor and placement agent. Ares turned to Tudor, Pickering, Holt & Co. for financial advice.
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