Pantera Drilling Trust Extends Credit Facility, Declares Jan. Distribution
Pantera Drilling Income Trust has extended its credit facility with its existing lender. The credit facility will remain at the same level,
consisting of a $5 million operating demand revolving loan, a $35 million committed 364 day extendible revolving credit facility, and a $500,000 demand standby letter of credit. At December 31, 2008, $21.2 million was outstanding under the credit facility, as compared with $30.6 million at September 30, 2008. These loans require interest to be paid monthly with no scheduled principal repayment unless the 364 day extendible revolving credit facility is not extended. The extension date is December 29, 2009 (the "Maturity date").
If not extended, the loan is capped and repayable over the ensuing four year period by quarterly payments of 1/20th of the amount outstanding at the Maturity date with the final payment covering the remaining balance due four years from the Maturity date. These payments would commence three months after the Maturity date. Amounts borrowed under the operating demand revolving loan will bear interest at the Trust's option of the bank's prime rate plus .75% or banker's acceptance rate plus 2% and amounts borrowed under the extendible revolving credit facility will bear interest at the Trust's option of the bank's prime rate plus 1% or banker's acceptance rate plus 2.25%.
The Trust today declared a cash distribution relating to the period January 1, 2009 to January 31, 2009, in the amount of $0.03 per trust unit
payable on February 13, 2009 to unitholders of record on January 30, 2009. The Trust has a distribution reinvestment plan (the "Plan"). The Plan provides eligible unitholders with the opportunity to reinvest their cash distributions in additional Pantera trust units at 95% of the average market price, as defined in the Plan. Participation information can be found on our website at www.panteradrilling.com.
Cash distributions are not guaranteed and will fluctuate with the performance of its operating entity, Pantera Drilling LP, which is dependent
upon oil and natural gas prices, the level of activity in the oil and gas industry, seasonal weather patterns, competition, major customers, third party suppliers, key personnel and workforce availability, among other risk factors.