Latham & Watkins Advises Royal Bank of Canada and The Toronto-Dominion Bank in Vermilion Energy’s US$1.075 Billion Acquisition of Westbrick Energy.
Vermilion Energy Inc. has announced the execution of an arrangement agreement to acquire Westbrick Energy Ltd., a privately owned oil and gas entity operating within the Alberta Deep Basin, for a total consideration of US$1.075 billion. This acquisition will be conducted via a plan of arrangement in accordance with the Alberta Business Corporations Act, with an anticipated closing date in the first quarter of 2025.
The funding for this acquisition will be sourced from Vermilion's undrawn revolving credit facility, which amounts to US$1.35 billion. Additionally, in relation to the acquisition, Vermilion has secured a new fully underwritten term loan of US$250 million, set to mature in May 2028, through a debt commitment letter with The Toronto-Dominion Bank (TD) and its affiliates. Furthermore, a new fully underwritten bridge facility of US$300 million has been arranged through a debt commitment letter with both the Royal Bank of Canada (RBC) and TD.
"The strategic acquisition of Westbrick represents a significant step forward in Vermilion's North American high-grading initiative to increase operational scale and enhance full-cycle margins in the liquids-rich Deep Basin," commented Dion Hatcher, President and CEO of Vermilion. "The Deep Basin is an area Vermilion has been operating in for nearly three decades and is currently the largest producing asset in the Company. The Acquisition adds 50,000 boe/d of stable production and approximately 1.1 million (770,000 net) acres of land from which Vermilion has identified over 700 drilling locations, providing a robust inventory to keep production flat for over 15 years while generating significant free cash flow to enhance the Company's long-term return of capital framework."
Latham & Watkins' legal team representing RBC and TD was led by Austin partners David Miller, Mollie Duckworth, and Michael Chambers, with support from Los Angeles associate Tristan Schmoor.
Vermilion Energy is a global oil and gas company focused on acquiring, exploring, and developing assets in North America, Europe, and Australia. The company prioritizes free cash flow generation and returning capital to investors, with a strong commitment to health, safety, and environmental sustainability. Vermilion operates primarily in light oil and liquids-rich natural gas, while also exploring conventional energy opportunities in Europe and Australia. The company is publicly traded on the Toronto and New York Stock Exchanges under the symbol VET.
Latham & Watkins LLP is a leading global law firm known for its expertise in corporate, litigation, and transactional law. With over 2,000 attorneys in 14 countries, the firm advises clients across a wide range of industries, including technology, healthcare, finance, and energy. Founded in 1934, Latham & Watkins is renowned for its work with emerging companies, offering legal solutions for startups and growth-stage businesses. The firm’s Emerging Companies & Growth team helps navigate complex legal matters related to business formation, financing, and scaling, making it a trusted partner for innovative companies worldwide.
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