Crimson gets $150 million subordinate credit facility

By Sara Rosenberg

New York, Sept. 6 - Crimson Exploration Inc. closed on a new $150 million 31/2-year subordinate multi-draw credit facility with initial availability of $15 million, according to a company news release.

Wells Fargo Energy Capital, Inc. is the lead on the new deal.

Pricing on the loan is Libor plus 525 basis points, with a 50 bps unused fee.

There is 101 call protection for one year.

Borrowings under the facility will be used to fund the company's capital costs associated with the development of the Rodessa formation in its Madisonville field and for other corporate purposes.

Security is a second-lien on all assets.

Simultaneously with the closing of the subordinate credit facility, the company obtained a redetermination of the borrowing base under its revolving credit facility to $25 million from $20 million.

Crimson is a Houston-based crude oil and natural gas company.

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