St. Mary Land & Exploration Company has entered into a new senior secured revolving credit facility. The bank group, comprised of 12 banks, has approved a $900 million borrowing base.
The current commitment amount from the bank group is $678 million, which is an increase from the $500 million in commitments provided in the previous facility. As of April 14, 2009, St. Mary has $312 million drawn under this facility. The new credit facility will mature on July 31, 2012, with the next redetermination of the borrowing base scheduled to be completed no later than October 1, 2009. The final agreement, which includes the specific terms and covenants governing the credit facility, will be filed with the Securities and Exchange Commission.
Wade Pursell, Executive Vice President and CFO, commented, "We are pleased to finalize this new credit facility. The increase in our commitments from the bank group during a very difficult credit market is a testament to the solid reserve base and credit standing of St. Mary. We believe it is important to have dry powder available to take advantage of opportunities that could present themselves in the near term or to weather a prolonged period of depressed commodity prices. This new facility enhances our solid financial position and the Company is well positioned to execute on its long-term business plan."
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