The Work

June 20, 2011 12:20 PM

Five Firms Lead on Laredo's $1 Billion Buy of Broad Oak

Posted by Brian Baxter

Laredo Petroleum announced late last week that it would acquire Broad Oak Energy in a deal worth roughly $1 billion, The Tulsa World reports.

Both Laredo and Broad Oak are privately held oil and gas production companies formed in partnership with their management teams by affiliates of New York-based private equity firm Warburg Pincus, according to the Houston Chronicle.

Christine LaFollette, partner-in-charge of Akin Gump Strauss Hauer & Feld's Houston office, is leading a team from the firm advising Laredo that includes counsel Kyle Roane and associate Alexandra Reuss. Tulsa-based Laredo has been a previous client of Akin Gump, according to SEC filings.

Also advising Laredo on the deal are Kenneth Dornblaser, a founding member of Tulsa's Johnson & Jones, and Donald Smith of Tulsa's Pray Walker, who is serving as due diligence counsel to the company. Pray Walker of counsel W. Bland Williamson is a founding member of the firm who also serves as senior legal adviser to Laredo. He joined the company in 2008.

Thompson & Knight corporate partner Timothy Samson, tax partner R. David Wheat, and associate Julia Mediamolle are representing Dallas-based Broad Oak on the deal. The firm has previously handled litigation work for Broad Oak, according to sibling publication the New York Law Journal.

Laredo said in a statement announcing the deal that it will finance the acquisition of Broad Oak primarily through newly issued units of Laredo. The deal requires Laredo to pay off Broad Oak's bank debts with funds from a revised $1 billion credit facility, reports the Oil & Gas Financial Journal, a trade publication. The facility will have a $650 million initial borrowing base underwritten by Wells Fargo and Bank of America/Merrill Lynch as lead arrangers.

A spokesman for Laredo told The Am Law Daily that Vinson & Elkins is handling some aspects of the deal related to financing.

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