Encore Acquisition obtains new $300 million revolver

By Sara Rosenberg

New York, June 26 - Encore Acquisition Co. said it entered into a new $300 million revolving credit facility. Fleet National Bank acted as administrative agent for the deal.

The Fort Worth, Tex. independent energy company's new loan matures on June 25, 2006.

Interest rates on the loan vary depending upon the amount of funds borrowed, according to a company spokesperson. If less than 25% is used the spread is Libor plus 100 basis points. If more then 25% but less than 50% is used the spread is Libor plus 112.5 basis points. If more than 50% but less than 75% is used the spread is Libor plus 125 basis points. If more than 75% but less than 90% is used the spread is Libor plus 150 basis points. And, if more then 90% is used the spread is Libor plus 175 basis points, the spokesperson said.

Security is a first priority lien on proved oil and natural gas reserves.

Initially, the available borrowing amount under the revolver is $220 million, which may be increased or decreased subject to the borrowing base calculation, the company said in a press release.

Furthermore, the company completed an offering of $150 million 8 3/8% senior subordinated notes due June 15, 2012. Proceeds from the note sale were used to repay and retire the company's previous credit facility.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.