Goodrich Petroleum Corporation announced that it has engaged BNP Paribas (BNPP), the company's Senior Lending Agent, to syndicate on a best efforts basis up to $100 million under a proposed Senior Second Lien Term Loan Facility. The Term Loan Facility will be subject to a number of terms and conditions.
Goodrich Petroleum intends to use the borrowings on the Term Loan Facility to initially pay down its revolving credit facility balance, which had $100 million outstanding at September 30, 2007, which may then be re-borrowed to fund a portion of its 2008 capital expenditure budget. Financial institutions will commit to participation in the Term Loan Facility only in connection with the syndication process.
"The term loan, once fully syndicated, will provide us with up to $100 million of available incremental capital, which will substantially increase our financial flexibility and allow us to continue to execute our aggressive drilling and development plans well into next year," said Gil Goodrich, the company's CEO.
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