Templar Energy Closes Comprehensive Restructuring

Templar Energy LLC and its affiliates (“Templar” or the “Company”) announced today that it has closed a comprehensive restructuring transaction on a fully consensual out-of-court basis, having obtained consent from 100% of each of its second lien lenders, equity holders and first lien RBL lenders. The transaction results in the extinguishment of $1.45 billion in second lien debt, a new equity investment of $365 million, and an amended RBL credit facility with a $600 million borrowing base.

“David D. Le Norman, President and Chief Executive Officer stated that “management is extremely pleased with the unanimous support it has received from all its constituents, enabling the Company to seamlessly implement this deleveraging transaction and leave the Company with significant liquidity, operational flexibility and poised to execute on attractive growth opportunities.”

Pursuant to the restructuring, second lien lenders received approximately $133 million in cash and 45% of the equity in reorganized Templar (after dilution) and were eligible to participate in a fully-backstopped rights offering of participating preferred equity in reorganized Templar. In total, the Company raised $365 million in cash in the form of new participating preferred equity (which includes $145 million from certain legacy equity holders) the proceeds of which were used to fund the cash consideration to each second lien debtholder, significantly pay down Templar’s RBL facility further adding to the Company’s liquidity, pay transaction costs and expenses, and fund the Company’s go-forward business plan.

Templar was represented by Simpson Thacher & Bartlett LLP, as legal counsel, and Evercore, as financial advisor. Akin Gump Strauss Hauer & Feld LLP, as legal counsel, and Moelis & Company LLC, as financial advisor, represented the steering committee of second lien lenders. This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities.

About Templar

Templar is an exploration and production company focused on investing primarily in the mature, liquids-rich producing basins in the Mid-Continent Region. Templar also evaluates opportunities outside the region which fit its economic criteria. Templar is headquartered in Oklahoma City, Oklahoma.



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