RAM Energy Resources Announces New $250 Million Revolving Credit Facility and $75 Million New Term Loan Facility
15 Marzo 2011 - 8:32PM
Business Wire
RAM Energy Resources, Inc. (Nasdaq: RAME) today announced that
it entered into a new $250 million Revolving Credit Facility and a
$75 million Term Loan Facility on March 15, 2011, replacing its
previous maturing credit facility. SunTrust Robinson Humphrey is
the agent for the revolving facility, and Guggenheim Corporate
Funding LLC is the agent for the term loan facility. The borrowing
base of the new facility was initially set at $150 million versus
its previous level of $145 million under the prior facility. All
such funds advanced under the revolving facility can be paid down
and re-borrowed during the five-year term of the revolver.
The revolver will initially bear interest at LIBOR plus a margin
of 3.25%, which can range between 2.5% to 3.25% depending on the
percentage of borrowing base used. Similarly, the term loan portion
of the credit facility initially provides for payments of interest
only during its five and one-half year term, with the initial
interest rate of LIBOR plus 9.0% with a 2% LIBOR floor. RAM
anticipates an initial blended interest rate of approximately 7.0%
on its existing outstanding borrowings, in contrast to the average
blended interest rate of 8.0% for 2010. Assuming the current
business plan and the new blended interest cost, cash interest
costs for the remainder of 2011 should be approximately $1.3
million lower.
“With the improvement in RAM’s balance sheet following the sale
of non-core natural gas properties late in 2010, our 2011
non-acquisition capital budget of $35.0 million, combined with the
successful replacement of the previous maturing credit facility
with our new, more traditional first and second lien credit
facilities, we are substantially repositioned to grow the company
and improve shareholder value,” said Larry Lee, CEO.
Forward-Looking Statements
This release includes certain statements that may be deemed to
be “forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. All statements in this
release, other than statements of historical facts, that address
the company’s pursuit of strategic alternatives, its borrowing
base, estimated blended interest rate, forecast of interest costs
and savings over interest costs in 2010, anticipated capital
spending, as well as events or developments that the company
expects or believes are forward-looking statements. Although the
company believes the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are
not guarantees of future performance and actual results or
developments may differ materially from those in the
forward-looking statements. Factors that could cause actual results
to differ materially from those in forward-looking statements
include oil and gas prices, actions taken and to be taken by the
government as a result of political and economic conditions,
continued availability of capital and financing, and general
economic, market or business conditions as well as other risk
factors described from time to time in the company’s filings with
the SEC. The company assumes no obligation to update publicly such
forward-looking statements, whether as a result of new information,
future events or otherwise.
About RAM Energy Resources
RAM Energy Resources, Inc. is an independent energy company
engaged in the acquisition, exploitation, exploration, and
development of oil and gas properties and the marketing of crude
oil and natural gas. Company headquarters are in Tulsa, Oklahoma,
and its common shares are traded on the Nasdaq under the symbol
RAME. For additional information, visit the company website at
www.ramenergy.com.
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