Goodrich Petroleum Expands Credit Facility
Goodrich Petroleum Corporation (NYSE: GDP) has entered into a revised senior credit agreement and a funded $30,000,000 second lien term loan that will expand its borrowing capabilities and extend its credit facility for an additional two years. The two agreements together will provide borrowing capacity up to $105,000,000, until such time as the borrowing base of the senior revolving credit is re-determined, which is currently scheduled for March 2006.
The amended bank credit facility has been increased from $50,000,000 to $200,000,000 and the maturity has been extended from February 25, 2008 to February 25, 2010. Borrowings under the senior revolver are subject to periodic re-determinations of the borrowing base which is currently established at $75,000,000, and is currently scheduled to be re-determined in March 2006, based upon the Company's 2005 year-end reserve report. As of the date of this release, borrowings outstanding under the amended credit facility were $40,000,000. Interest on revolving borrowings under the bank credit facility accrues at a rate calculated, at the option of the Company, at either the bank base rate plus 0.00% to 0.50%, or LIBOR plus 1.25% to 2.00%, depending on borrowing base utilization. BNP Paribas is the lead lender and administrative agent under the amended credit facility with Comerica Bank and Harris Nesbit Financing, Inc. as co-lenders.
The second lien term loan agreement provides for a 5-year, non-revolving loan of $30,000,000 which was funded on November 17, 2005 and is due in a single maturity on November 17, 2010. Optional prepayments of term loan principal can be made in amounts of not less than $5,000,000 during the first year at a 1% premium and without premium after the first year. Interest on term loan borrowings accrues at a rate calculated, at the option of the Company, at either base rate plus 3.50%, or LIBOR plus 4.50%, and is payable quarterly. BNP Paribas is the lead lender and administrative agent under the second lien term loan agreement.
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