ATP Expands Credit Facility, Reduces Interest Rate
ATP Oil & Gas Corp. said that it has expanded and improved the terms of its senior secured credit facility by increasing the credit facility size from $350 million to $525 million and reducing the interest rate.
The company dcreased the interest rate from LIBOR plus 5.5% to LIBOR plus 3.25%. In addition, it inserted provisions that allow ATP--if it so chooses--to repurchase its own shares in the open market. Finally, ATP amended covenants within the credit facility to give itself additional flexibility.
"Our continued successful execution of our business plan has allowed us to expand the facility, improve its terms, and further reduce our overall cost of capital,” said T. Paul Bulmahn, ATP’s chairman and president. “The reception of the investment community to our transaction reflects their continued confidence in the company as participation was well over-subscribed. The added financial flexibility and resources will enable ATP to fund development activities at its newly acquired and existing properties, and will enhance ATP's ability to continue making strategic acquisitions. It also provides to the company the flexibility to address other elements of the capital structure in our continuing efforts to reduce our overall cost of capital."
ATP recently acquired properties with logged hydrocarbons from previously drilled wells at Mississippi Canyon (MC) Mirage (MC Block 941) and Morgus (MC Block 942). These properties are planned for joint development. Green Canyon 37, also with identified and logged hydrocarbons, was acquired in the March 2006 lease sale. ATP is reviewing its options concerning Oasis (MC Block 943), which is an exploratory opportunity with seismic amplitudes that greatly resemble discoveries nearby. All of the properties are being added to ATP's drilling and development program.
Credit Suisse Securities (USA) LLC acted as sole lead arranger for the financing.
ATP Oil & Gas is a development and production company of natural gas and oil in the Gulf of Mexico and the North Sea. The company trades publicly as ATPG on the NASDAQ National Market.
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