EPL Announces Refinancing
17 Giugno 2010 - 3:42PM
Business Wire
Energy Partners, Ltd. (EPL or the Company) (NYSE:EPL) announces
it has reached agreement on an amendment to its $125 million Senior
Secured Credit Facility (Credit Facility) with General Electric
Capital Corporation which will enable it to redeem its outstanding
Senior Subordinated PIK Notes due 2014 (the Notes). The Credit
Facility will be resized effective upon the redemption of the Notes
to provide for an initial $70 million borrowing base that will
support a new $25 million term loan and a three-year revolving
credit facility with $45 million of availability that is expected
to be undrawn at closing. The optional redemption of the Notes
carries no prepayment premium and will be funded with cash on hand
and funds available under the Credit Facility. As a result of these
actions, EPL expects to end the quarter with net cash and in excess
of $70 million of liquidity.
The redemption notice that was sent by the indenture trustee to
holders of the Notes provides for a redemption date of June 28,
2010 and a payment totaling $70.9 million of principal and accrued
interest in connection with the redemption of those Notes.
Gary C. Hanna, EPL’s CEO stated, “Refinancing our subordinated
debt to reduce our cost of capital was a top priority in 2010, and
we are pleased to announce that this is now on track to be
accomplished during the second quarter consistent with our
previously expressed intent. The impact of the Notes to our P&L
for this year alone was projected to be approximately $0.35 cents
per share. This refinancing establishes a capital structure and
cost consistent with the improved financial strength of the
organization. Our Company is both operationally and financially
solid, borne out of our comprehensive restructuring and ongoing
operational initiatives. Zero net debt coupled with our growing
liquidity provides us with substantial flexibility towards
maximizing stockholder value.”
EPL’s Board of Directors is also pleased to announce that its
size has been increased to six and that Mr. Hanna has been
appointed to the board. Marc McCarthy, EPL’s Chairman commented,
“Gary has done an excellent job during his time with the Company
restoring stability and enhancing operations and management. He has
been the right leader for the organization during its period of
change helping to refocus the company for the future. We are glad
to welcome his participation and insight on the board.” Mr. Hanna
joined EPL in September 2009 as Chief Executive Officer. He has
nearly 30 years of executive experience in the energy sector
primarily in the Gulf of Mexico and the mid-continent. He has
served in various management capacities for a number of energy
service companies and E&P companies, including Tetra
Technologies, Inc., Maritech Resources, Gulfport Energy Corporation
and DLB Oil & Gas, Inc.
Description: Founded in
1998, EPL is an independent oil and natural gas exploration and
production company based in New Orleans, LA and Houston. The
Company’s operations are concentrated in the shallow to moderate
depth waters in the Gulf of Mexico focusing on offshore Louisiana.
For more information, please visit www.eplweb.com.
Forward-Looking Statements
This press release may contain forward-looking information and
statements regarding EPL. Any statements included in this press
release that address activities, events or developments that EPL
expects, believes, plans, projects, estimates or anticipates will
or may occur in the future are forward-looking statements. We
believe these judgments are reasonable, but actual results may
differ materially due to a variety of important factors. Among
other items, such factors might include: changes in general
economic conditions; uncertainties in reserve and production
estimates; unanticipated recovery or production problems; hurricane
and other weather-related interference with business operations;
the effects of delays in completion of, or shut-ins of, gas
gathering systems, pipelines and processing facilities; oil and
natural gas prices and competition; the impact of derivative
positions; production expenses and expense estimates; cash
flow and cash flow estimates; future financial performance;
planned and unplanned capital expenditures; volatility in the
financial and credit markets or in oil and natural gas prices; and
other matters that are discussed in EPL's filings with the
Securities and Exchange Commission. (http://www.sec.gov/).
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