W&T Offshore, Inc. (NYSE: WTI) has announced that it has entered into a series of transactions with its wholly-owned special purpose vehicles (SPVs) and Munich Re Reserve Risk Financing, Inc. (MRRF) to enhance its capital structure. The Company transferred 100% of its Mobile Bay Area producing assets (Mobile Bay Assets) and related gas treatment facilities to the SPVs in return for the net cash proceeds from a new US$215 million first-lien non-recourse term loan provided by MRRF to the SPVs. Through its 100% ownership in the SPVs, W&T will retain any upside value in the Mobile Bay Assets, subject to the terms of the MRRF loan.
Latham & Watkins LLP represents W&T Offshore, Inc. in the transaction with a Houston-based team led by partners David Miller, Pamela Kellet, and Jeff Munoz, with finance associates Jack Traylor, Whitley Johnson, Kirby Swartz, and Rosey Jamail, as well as associate Corey Allen on oil and gas matters. Advice was also provided on derivatives and hedging matters by New York partner Yvette Valdez, with New York associate Ashley Weeks; tax matters by Houston partner Bryant Lee, with Houston associate Emily Fawcett; and on environmental matters by Los Angeles counsel Joshua Marnitz.