Mach Natural Resources closes acquisition of Paloma assets, enters credit pact

Mach Natural Resources announced that it has closed the acquisition of certain interests in oil and gas properties, rights and related assets located in certain counties in Oklahoma from Paloma Partners, a privately-held Delaware limited liability company backed by EnCap Investments and its affiliated companies. In conjunction with the closing of the Acquisition, Mach entered into an $825M term loan credit agreement to fund the purchase price, from a group led by Chambers Energy Management and EOC Partners, and including Mercuria Investments US, Inc., funds managed by Farallon Capital Management, Macquarie Group, and Texas Capital Bank, among other financial institutions as participants, with Texas Capital Bank acting as the administrative agent. Mach also entered into a $75M super priority revolving credit facility led by MidFirst Bank. In connection with closing of the acquisition, Mach used proceeds from the Term Loan Facility and cash on hand to repay the existing amounts outstanding under the previously outstanding revolving credit agreement and such agreement was terminated. As of closing of the acquisition, the revolving credit facility was undrawn.