Upstream: Restructuring/Investment Banking: Renaissance Offshore: Financial Advisor In Out-Of-Court Restructuring
Renaissance Offshore (“the Company”) was founded in December 2011 as an acquirer and developer of legacy oil fields in the Gulf of Mexico (“GoM”). Between 2012 and 2014, Renaissance grew substantially with the acquisition of 16 GoM producing fields located off the coast of Louisiana, 15 of which are operated, and most are 100% owned and over 70% oil-weighted.
Opportune Partners LLC and Opportune LLP (collectively “Opportune”) were engaged by the Company to act as financial and sell-side advisors to run a dual-track process of restructuring its $113 million secured bank debt facility and an asset sale process. Prior to initiating an asset sale process, the Company was able to reach an agreement with its lender group to cancel the Company’s secured bank debt for an overriding royalty interest (“ORRI”).
Services performed during bank negotiations included:
- Cash flow forecasting
- Bank reporting
- Financial modeling
- Preparation of a list of potential acquirers
- Development and drafting of marketing materials
Specifically, Opportune professionals added value by:
- Successfully working with the Company’s management and its advisors to avoid a sale of the Company’s assets into a severely depressed market by negotiating an ORRI-structured solution that was acceptable to both the lender group and existing equity ownership.
- Preparing a complex model to calculate various recovery values for ORRI and presented to the lender group that was an integral component in convincing the lender group to accept an ORRI in the business.
- Closing the restructuring transaction quickly (a little over a month from being engaged) to avoid significant legal and financial costs.
- Quickly creating marketing materials and other diligence information to meet lender deadlines for a dual-track process to allow the time required to negotiate and close the out-of-court restructuring of the debt.
- Preserving the business and value for all stakeholders, which allowed for an expedited restructuring of the debt.
In a down market with limited sale options and/or very depressed pricing in Q2 2020, this alternative restructuring provided a better option to all parties.
Since its inception, Opportune has been one of the most active financial advisory firms in the energy sector. Our restructuring experience, coupled with our energy-industry expertise, maximizes value for constituents in a distressed situation. We think strategically, and deliver results both operationally and financially through hands-on, actionable implementation to meet the challenges of business turnarounds. We serve equity, secured lenders, unsecured creditors, and others throughout the capital structure to enhance value and increase recoveries during times of operational and financial crisis. For more information on our Restructuring services, CLICK HERE.
Opportune Partners LLC is an independent investment banking and financial advisory affiliate of Opportune LLP, a leading global energy business advisory firm. To learn more about Opportune Partners, please visit our website here and view our brochure here.
Securities Offered Through Opportune Partners LLC Member FINRA/SIPC an affiliated entity.