Roan Resources, Inc. Announces Commitments for a $100 Million Term Loan Facility and Reaffirmation of the $750 Million Borrowing Base

June 19, 2019 Business Wire

OKLAHOMA CITY–(BUSINESS WIRE)–Roan Resources, Inc. (NYSE: ROAN) (“Roan” or the “Company”) today announced it has received commitments for a $100 million term loan facility from funds affiliated with certain significant shareholders of the Company that are represented on the board of directors. Borrowings under the term loan facility are expected to bear interest at a rate equal to three-month LIBOR plus 7.50%. In exchange for the commitments, the Company has agreed to issue 1.0% of the outstanding shares of Class A common stock of the Company to the lending parties no later than June 26, 2019. The term loan facility is expected to close before the end of the month.

Separately, the Company completed its June borrowing base redetermination for its revolving credit facility. The Company’s bank group unanimously reaffirmed the current borrowing base of $750 million.

Pro forma for the term loan facility as of June 30th, the Company has approximately $150 million of available liquidity, which is more than ample to fund Roan’s ongoing capital program.

“We are very pleased to announce these two events today,” said Joseph A. Mills, Roan’s Executive Chairman of the Board. “The $100 million term loan facility, which was struck at favorable terms for the Company, and the reaffirmation of our borrowing base at $750 million enhances our current liquidity and demonstrates the confidence these two groups have in the asset quality and strategic direction of Roan. We now have ample liquidity to fund our ongoing capital program and remain focused on growing production 20-25% this year while also generating free cash flow by the fourth quarter. The Company also continues to actively evaluate strategic alternatives with Jefferies and Citigroup.”

Additional details regarding the financing described above and related matters can be found in the Form 8-K filed by the Company in conjunction with this press release.

About Roan Resources

Roan is an independent oil and natural gas company headquartered in Oklahoma City, OK focused on the development, exploration and acquisition of unconventional oil and natural gas reserves in the Merge, SCOOP and STACK plays of the Anadarko Basin in Oklahoma. For more information, please visit www.RoanResources.com, where we routinely post announcements, updates, events, investor information, presentations and recent news releases.