Constellation Energy plans $200 million revolver with IPO of common units

By Sara Rosenberg

New York, Oct. 16 - Constellation Energy Partners LLC is planning to get a new $200 million four-year secured revolving credit facility linked to its initial public offering of 6.275 million common units, according to an S-1/A filed with the Securities and Exchange Commission Monday.

RBS Securities is the lead bank on the deal.

Pricing will range from Libor plus 125 to 200 basis points based on use.

The initial borrowing base under the revolver is expected to be set at $100 million.

Security is mortgages on the company's natural gas properties, as well as a pledge of all ownership interests in its subsidiaries.

Borrowings will be available for acquisition, exploration, operation and maintenance of natural gas and oil properties, working capital and general limited liability company purposes.

Constellation Energy is a Baltimore-based company focused on the acquisition, development and exploitation of oil and natural gas properties as well as related midstream assets.

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