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Fueling the oil and gas industry




About Munich Re
Munich Re is one of the world’s leading providers of reinsurance, primary insurance and insurance-related risk solutions. The corporate group consists of the reinsurance and ERGO business segments, together with the capital investment company, MEAG. The Group operates in all lines of insurance. Ever since it was founded in 1880, Munich Re has been known for its unrivalled risk-related expertise and its particularly sound financial position. It also offers its clients financial protection when faced with extraordinarily high levels of damage – from the 1906 earthquake in San Francisco right through to the series of Atlantic hurricanes that occurred in 2017. Munich Re possesses outstanding innovative strength, which enables it to also provide cover for extraordinary risks such as rocket launches, renewable energies, cyber attacks or pandemics. The company is playing a key role in driving forward the digital transformation within its industry and in doing so is increasing its ability to assess risks and expanding upon the range of services that it offers. Its tailor-made solutions and close proximity to its clients make Munich Re one of the world’s most sought-after risk partners for the economy, institutions and private individuals.

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     
justin.moers@mrtl.com      

Chad Mabry
Phone: +1 (832) 592 0085
chad.mabry@mrtl.com

Office Locations

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

Königinstr. 107
80802 München
Germany

Munich Re Experts
George Carrick
President of MRRF
Phone: +1 (832) 592-0075
Justin Moers
Managing Director
Phone: +1 (281) 203 5944
Chad Mabry
Vice President
Phone: +1 (832) 592-0085
John Reichardt
Technical Underwriter
Phone: +1 (281) 203-5923
Jacob Gilreath
Petroleum Engineer
Phone: +1 (281) 203-5943
Thanassis Tjavaras, PhD
Financial Underwriter
Phone: +1 (832) 592 0067
JannaLyn Allen
Chief Legal Officer of MRRF
Phone: +1 (281) 203-5928
Jürgen Goldstein
Chief Operating Officer of MRRF
Phone +49 (89) 3891-3699
Marcus Weber
Portfolio Manager
Phone +49 (89) 3891-6682
Matthias Tönnis
Geologist
Phone +49 (89) 3891-8245
Laurence Schultz
Legal Officer
Phone +49 (89) 3891-9289
Dr. Christian Merz
Financial Underwriter
Phone +49 (89) 3891-8575
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