ATP Oil & Gas Corporation (Nasdaq:ATPG) said today that they've priced a new $150 million First Lien Senior Secured Term Loan facility, which will replace the prior $100 million revolving credit facility they had.
Chairman and CEO T. Paul Bulmahn said it'll help them defensively and offensively for the business.
“With this new facility, ATP has added more liquidity, flexibility and extended the maturity of its first lien debt. This structure, which is free of financial maintenance covenants, provides the necessary flexibility for us to focus on developing oil and gas assets and creating shareholder value. In addition, the facility offers provisions to expand it incrementally by $350 million which would increase the size of the loan to $500 million as the value of our assets grow. ATP is financially stronger today to capitalize on opportunities that should arise due to the adversity and challenges currently facing the offshore oil and gas industry, said Bulmahn”
The facility will mature on October 15, 2014, and carries an 11 percent coupon with it.
ATP will close the deal by no later than June 30, 2010.
No comments:
Post a Comment