Triloma EIG Energy Income Fund and Triloma EIG Energy Income Fund – Term I, two unlisted investment companies that focus on privately originated energy company and project debt, are participating in the issuance of $100 million of senior secured second lien notes and $150 million of Series B redeemable preferred stock issued by Rosehill Resources Inc. Rosehill may issue up to an additional $50 million of its Series B stock, at its election.
Rosehill is an oil and gas exploration company with producing assets in Texas and New Mexico with its investment activity focused on the Delaware Basin portion of the Permian Basin.
The notes have an interest rate of 10 percent per year to be paid quarterly in cash and were issued at 97 percent of par. The Series B stock has a dividend rate of 10 percent per annum to be paid quarterly in cash, with the option for Rosehill to pay the dividend in kind up to 40 percent of the first four quarterly dividends.
The investment funded Rosehill’s acquisition of 4,565 net acres and certain producing oil and gas properties in the Southern Delaware Basin which nearly doubles its total net acreage to 9,200. The proceeds may also be used by Rosehill to fund additional property acquisitions and capital development opportunities.
The transaction was negotiated and structured by EIG on behalf of its managed investment vehicles and the funds.
Triloma EIG Energy Income Fund and Triloma EIG Energy Income Fund – Term I are managed by Triloma Energy Advisors and EIG Credit Management Company, wholly owned subsidiaries of Triloma Financial Group and EIG Global Energy Partners, respectively.
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