Encore Acquisition plans $1.25 billion revolver for acquisitions

By Sara Rosenberg

New York, March 1 - Encore Acquisition Co. detailed the structure of its proposed acquisition financing credit facility, saying that it will be a $1.25 billion five-year revolver, according to a 10-K filed with the Securities and Exchange Commission Thursday.

Bank of America is the lead bank on the deal.

The revolver, which is expected to close in March, will have an initial borrowing base of $650 million that will increase to $950 million upon completion of the Williston Basin acquisition, which is scheduled to close in April.

Encore is buying oil and natural gas properties in the Williston Basin in Montana and North Dakota from Anadarko Petroleum Corp. for $410 million in cash.

In addition, the company is buying oil and natural gas properties in the Big Horn Basin in Wyoming from Anadarko for $400 million in cash, subject to customary purchase price adjustments.

Encore also said in the SEC filing that it expects that one of its subsidiaries will enter into a $300 million five-year revolver in March with a $115 million borrowing base and a $10 million overadvance feature, which will be non-recourse to the company.

Encore is a Fort Worth, Texas, developer of onshore North American oil and natural gas reserves.

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