ATP Credit Facility Amendment Provides Additional Flexibility

ATP Oil & Gas has added flexibility to its Term Loans by widening its covenants for the reporting periods from December 31, 2009 through December 31, 2010.

T. Paul Bulmahn, ATP's Chairman and CEO said, "Since 2008, the world has experienced a severe recession. Despite these conditions, ATP has delivered increased financial strength and decreased our debt. Since December 2008 ATP's Tranche B-2 Term Loan has been reduced from $600 million to $161 million. This performance has been recognized by our lenders and is one of the reasons that ATP was able to obtain greater flexibility with our covenants in order to address our goals of first production at Telemark, reduction of the Tranche B-2 and added financial strength. The reception of the investment community to our amendment transaction reflects their continued confidence in the company's strategy."

General terms of the amendment expand the Net Debt to EBITDAX ratio from 3.0x to 4.0x, the EBITDAX to Interest ratio from 2.5x to 2.0x and the current ratio from 1.0x to 0.8x. During the period of the expanded covenants, the spread on the rate for ATP's Term Loans will increase by 2.75% falling to 1.00% for the period beginning in January 2011. ATP paid an initial fee to the lenders of a half percent at closing.

Credit Suisse acted as sole lead arranger for the amendment.


Our Privacy Pledge

Most Popular Articles

Brent Crude Oil : $50.79/BBL 1.30%
Light Crude Oil : $49.96/BBL 1.10%
Natural Gas : $2.77/MMBtu 2.12%
Updated in last 24 hours