EP Energy offers to exchange B-2, B-3 term loans for new term loan

By Angela McDaniels

Tacoma, Wash., Aug. 5 – EP Energy Corp. said its subsidiary EP Energy LLC offered to a group of its term loan lenders to exchange their existing tranche B-3 term loans due May 2018 and tranche B-2 term loans due April 2019 for a like principal amount of a new term loan.

The offer was made during confidential discussions with the lenders that are ongoing, according to an 8-K filing with the Securities and Exchange Commission.

The new term loan would be expected to have a maturity date of June 30, 2021, subject to an earlier maturity date if the principal amount of EP Energy LLC’s existing 9 3/8% senior notes due 2020 exceeds $500 million prior to their maturity.

The new term loan would be governed by a new term loan agreement and would be expected to be secured by a lien on the collateral that secures the existing term loans that would be senior in priority to the existing term loans and junior in priority to the liens securing EP Energy LLC’s existing reserve-based loan facility.

EP Energy is a Houston-based oil and natural gas exploration and production company.

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