Laredo Petroleum Senior Notes, No Additional Secured Debt
Analyzing the new Laredo Petroleum senior notes, our Americas Covenants team takes a deep dive into the company’s low leverage ratio and their inability to incur any additional secured debt. The energy company, which focuses on the acquisition, exploration and development of oil and natural gas properties in the Permian Basin, acquired Sabalo Energy on July 1, 2021 and entered into their sixth amendment to their credit agreement on May 7th.
Based on these capital structure changes, our Americas Covenants team came to a few conclusions about the Laredo Petroleum senior notes as well as the company’s cash sweep, financial covenants, annualized EBITDAX, debt and lien payments, restricted payments, investments and note redemptions and their agent clawback provisions. Read our full analysis of the Laredo Petroleum senior notes and other covenant conclusions here: https://reorg.com/new-coverage-despite-low-leverage-ratio-laredo-petroleum-cannot-incur-any-additional-secured-debt/