Constellation Energy gets $700 million in credit facilities

By Sara Rosenberg

New York, April 3 - Constellation Energy Partners LLC closed on a new $500 million secured credit facility and a $200 million amended and restated credit facility, with both deals maturing on Oct. 31, 2010, according to an 8-K filed with the Securities and Exchange Commission Thursday.

RBS acted as the lead arranger, bookrunner and administrative agent on both deals, which closed on March 28. BNP Paribas and Wachovia acted as co-syndication agents.

Pricing on the two facilities can range from Libor plus 125 basis points to 200 bps, based on use.

The initial borrowing base under the new facility is $150 million and the initial borrowing base under the amended and restated facility is $90 million.

There is a $250 million accordion feature under the new facility.

Borrowings under the new facility are available for acquisition, exploration, operation and maintenance of natural gas and oil properties located in states other than Alabama, working capital and general limited liability company purposes.

At close, the company $131 million under the term loan portion of the new credit facility to fund the acquisition of CoLa Resources LLC's interests in 83 non-operated producing wells located in the Woodford Shale in the Arkoma Basin, Okla., and to repay existing debt.

Borrowings under the amended and restated facility are available for acquisition, exploration, operation and maintenance of natural gas and oil properties located in Alabama, working capital and general limited liability company purposes.

At close, the company borrowed $81 million under the term loan portion of the amended and restated facility to repay existing debt.

Constellation Energy is a Baltimore-based acquirer, developer and producer of oil and natural gas properties, and related midstream assets.

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