Endeavour gets $150 million of term loans led by Cyan Partners

By Sara Rosenberg

New York, Aug. 20 - Endeavour International Corp. closed on $150 million in new three-year term loans, according to an 8-K filed with the Securities and Exchange Commission on Friday.

Cyan Partners LP is the administrative agent on the deal that was completed on Aug. 16.

The loans are priced at 12%, plus 3% PIK.

Call protection on the loans in non-callable for one year, then at 103 in year two and 101 in year three.

Financial covenants include a maximum total leverage ratio ranging from 7.85:1.00 at Sept. 30, 2010 to 3.00:1.00 at Dec. 31, 2012 and thereafter, a minimum EBITDAX, ranging from $45 million for the four-quarter period ending Sept. 30, 2010 to $200 million for the four-quarter period ending June 30, 2013, a minimum reserve coverage ratio of not less than 3.00:1.00, and a PDP coverage ratio of not less than 0.25:1.00 on or prior to Sept. 30, 2011 and not less than 0.50:1.00 after Sept. 30, 2011.

There is a $10 million accordion feature.

The company used $66 million of the proceeds from the loans to repay in full the outstanding borrowings under its $225 million revolver and letter-of-credit facility agreement, as well as its $25 million junior facility.

Remaining proceeds will be used for general corporate purposes.

Endeavour is a Houston-based oil and gas exploration company.

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