Delta Petroleum Closes Senior Secured Credit Facility
Delta Petroleum has closed on a new senior secured credit facility with Macquarie Bank Limited ("Macquarie").
As previously announced, the new credit facility is for $100 million, of which $50 million will be initially available to the Company. The $50 million is comprised of a $30 million revolving line of credit (Tranche A) and a $20 million advancing term loan (Tranche B). The interest rate is Libor plus 7% or Prime plus 6% for Tranche A borrowings and Libor plus 9% or Prime plus 8% for Tranche B borrowings, and is subject to a 2% closing fee on the initial commitment amount. The credit facility matures on January 31, 2012. The new credit facility replaces Delta's prior credit facility.
Carl Lakey, President and CEO of Delta Petroleum, stated, "The closing of this new credit facility is yet another step in the restoration of the financial flexibility Delta needs to successfully execute on its focused business plan of creating greater value from its core asset in the Piceance Basin."