W&T Offshore announces enhancement to capital structure
HOUSTON â W&T Offshore Inc. announced that it has enhanced its capital structure by entering into a transaction with its wholly-owned special purpose vehicles and Munich Re Reserve Risk Financing Inc.
The company transferred 100% of its Mobile Bay Area producing assets and related gas treatment facilities to the SPVs in return for the net cash proceeds from a $215 million first-lien non-recourse term loan to the SPVs provided by MRRF. Through its 100% ownership in the SPVs, W&T retains the upside value in the Mobile Bay Assets.
A portion of the proceeds to the company from the transaction were used to repay the $48 million outstanding balance on its reserve-based lending facility and to enter into commodity hedging contracts related to the anticipated future production of the Mobile Bay Assets.
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