Each one in plain English, with the numbers worked through for a shareholder.
27 June 2022debt financing● NeutralMajor
Sitio's operating partnership took out a fully drawn $250,000,000 unsecured 364-day bridge loan from Bank of America and others (maturing June 23, 2023) to help pay for the roughly $323 million Foundation Minerals acquisition of about 19,700 net royalty acres, which closed June 24, 2022. It also agreed to buy about 12,200 net royalty acres from Momentum Minerals for about $224 million, expected to close in Q3 2022. The credit agreement was amended to waive a borrowing-base cut for up to $400 million of extra debt and to add a springing maturity 91 days before the bridge loan's maturity if any bridge loan remains outstanding. This adds debt as the company grows beyond the Desert Peak combination.
Source Energy Partners, LLC, OCM Source Holdings, L.P, Oaktree Fund GP, LLC, Oaktree Fund GP I, L.P, Oaktree Capital I, L.P, OCM Holdings I, LLC, Oaktree Holdings, LLC, Oaktree Capital Group, LLC, Oaktree Capital Group Holdings GP, LLC, Brookfield Asset Management Inc, BAM Partners Trust disclosed a new substantial STR Sub Inc. shareholding (51.70% of votes).
Royal Resources L.P, Royal Resources GP L.L.C, Blackstone Energy Management Associates L.L.C, Blackstone Management Associates VI L.L.C, Blackstone EMA L.L.C, BMA VI L.L.C, Rock Ridge Royalty Company LLC, RRR Energy LLC, RRR Aggregator LLC, BX Primexx Topco LLC, BCP VII/BEP II Holdings Manager L.L.C, Blackstone Energy Management Associates II L.L.C, Blackstone Management Associates VII L.L.C, Blackstone EMA II L.L.C, BMA VII L.L.C, Blackstone Holdings III L.P, Blackstone Holdings III GP L.P, Blackstone Holdings III GP Management L.L.C, Blackstone Inc, Blackstone Group Management L.L.C, Stephen A. Schwarzman reported a STR Sub Inc. shareholding of 21,025,715 shares (64.10% of votes) in a periodic institutional filing.
On June 7, 2022 the Desert Peak merger closed and Falcon became Sitio Royalties Corp. after a 4-for-1 reverse split effective June 3. Desert Peak's owners received 61,905,339 Class C shares and the same number of OpCo units (post-split); the filing states Kimmeridge holds about 43.5%, Source about 15.4%, Blackstone about 25.0%, and remaining stockholders about 16.1%. Existing Class A holders keep their shares, now post-split, so their stake is diluted to the 16.1% stated; this resolves the merger thread, and the company moved to Denver, with a planned NYSE listing transfer on June 14, 2022.
