While U.S. stocks fell for a second straight session on Wednesday, Legacy Reserves LP (NASDAQ:
Legacy Reserves LP
Legacy Reserves shares jumped nearly 40% today, after the oil and gas company announced that it has executed a second lien term loan credit agreement with GSO Capital Partners to provide loans in an aggregate amount up to $300 million. Advances under the Second Lien will be issued with an upfront fee of 2%, bear interest of 12.0% per annum and mature, subject to certain conditions, on August 31, 2021.
In reaction, Stifel Nicolaus analyst
Brungardt commented, “We view the announced transaction as incrementally positive for the partnership. When we downgraded the units to Sell, our call was centered around a challenging fall redetermination. However, we view that risk as largely removed with new access to liquidity...