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Fueling the oil and
gas industry

Alternative debt financing for upstream oil and gas

Munich Re Reserve Risk Financing, Inc.

We are a Houston, Texas based, wholly-owned subsidiary of Munich Re. Munich Re, a AA- rated global insurance company operating across all risk lines, provides billions of dollars in underwriting commitments for energy-related risks and direct investments in energy infrastructure.

Munich Re Reserve Risk Financing, Inc. ("MRRF") provides a unitranche alternative to combinations of bank RBL and junior/mezzanine debt that is:

  • non-dilutive;
  • fixed-rate; with
  • no borrowing base redeterminations.

We target established middle market upstream operators seeking to:

  • accelerate production growth through conversion of PNP/PUD reserves;
  • increase reserves/production through strategic asset acquisitions; and/or
  • rationalize capital structures.

Our Offering

  • Non-dilutive, fixed-rate, senior secured, fully amortizing term loans
  • Loan sizes from $50 to $250 million
  • Loan tenors up to 7 years
  • OID of 1.0% to 2.0%

Key Advantages

  • Fixed-price, fully-amortizing structure eliminates refinancing risk
  • Total cost embedded in up-front fees plus fixed coupon – no equity “kickers”
  • Recourse limited to subject properties and specific contractual undertakings of sponsor
  • Munich Re credit enhancement supports term hedging of commodity prices at advantaged rates
  • Multi-billion dollar balance sheet provides substantial capacity to fund ongoing capital needs

Requirements

  • Subject properties located in North America
  • Subject properties can include up to 50% PNP/PUD reserves provided that:
    • Acceptable plan of development agreed as precondition to funding
  • Capital sufficient to fund the plan is available and earmarked
  • Development costs capped via turnkey with sponsor or acceptable third parties
    - Subject properties to be “ring-fenced” via sponsor-owned SPV as borrower or VPP/Prepay/other acceptable form of conveyance relating specifically to the subject properties
  • Experienced management with track record of creating value in target asset area/basin
  • Hedging of associated commodity price risk

Do you have questions?

Justin Moers
Phone: +1 (281) 203 5944

Do you have questions?

Justin Moers
Phone: +1 (281) 203 5944

Office Locations

1790 Hughes Landing Blvd # 275,
The Woodlands,
Texas 77380, USA

Königinstr. 107
80802 München
Germany

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