Foutch's Laredo combines with Broad Oak for $1B

摘要

Randy Foutch's Laredo PetroleumLLC, Tulsa, Okla., plans to acquire David Braddock's Broad Oak EnergyInc., Dallas, for approximately $1 billion in equity and debt. The two privately held Midcontinent-focused operators are portfolio companies of private-equity provider Warburg Pincus LLC. Broad Oak will become a subsidiary of Laredo. Laredo will pay existing Broad Oak bank debt with funds from a revised $1-billion credit facility with an initial borrowing base of $650 million. Wells Fargo and Bank of America Merrill Lynch are joint lead arrangers.