Becoming One. Laredo Petroleum, LLC and Broad Oak Energy, Inc. announced that they have entered into definitive agreements whereby Broad Oak will become a wholly owned subsidiary of Laredo in exchange for aggregate consideration of approximately $1 billion.
This aggregate consideration will consist primarily of newly issued units of Laredo. As part of the transaction, Laredo will also pay off the existing Broad Oak bank indebtedness with funds from a revised $1 billion credit facility. Both Laredo and Broad Oak are privately held companies formed in partnership with their management teams by affiliates of Warburg Pincus, LLC.
The transaction is expected to close at the beginning of July and is subject to customary closing conditions.
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