ATP has priced a new $150 million First Lien Senior Secured Term Loan facility. The facility replaces the existing undrawn $100 million revolving credit facility and additionally provides an option to increase the first lien loan by up to an additional $350 million (for a total of $500 million) as the company's Adjusted Consolidated Net Tangible Assets value grows. The facility matures October 15, 2014 and carries an annual coupon of 11%. Other features include the elimination of financial maintenance covenants and the ability to reinvest within one year 100% of asset sale proceeds into future developments. Closing, which is anticipated no later than June 30, 2010, is conditional on normal closing documents and deliverables.
Chairman and CEO T. Paul Bulmahn stated, "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."
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