| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers A > Headlines for American Standard Energy Corp. > News item |
American Standard Energy details $300 million credit facility
By Jennifer Chiou and Sara Rosenberg
New York, Oct. 4 - American Standard Energy Corp. revealed the specifics on the new $300 million three-year senior secured credit facility it entered into on Sept. 21, according to an 8-K filing with the Securities and Exchange Commission.
Macquarie Bank Ltd. led the deal.
As reported, the facility consists of a $100 million revolver and an up to $200 million term loan that is available for drawing for 18 months from the close.
The facility will mature on March 20, 2013.
Pricing on the revolver can range from Libor plus 275 basis points to 325 bps based on the percentage of borrowing base that is advanced, and pricing on the term loan is Libor plus 750 bps.
The facility is backed by a security interest in 100% of the capital stock of American Standard Energy.
In connection with the credit agreement, the company issued to Macquarie Americas Corp. a five-year warrant to purchase 5 million of the company's shares at an exercise price of $7.50 each.
The warrant is exercisable on a cashless basis if there is no registration statement covering the underlying stock, the filing noted.
Proceeds from the facility will be used to provide working capital for exploration and production operations, to acquire proven producing oil and gas properties and for capital expenditures.
As noted, initial availability under the revolver is $12 million, which was fully drawn at closing, and initial availability under the term loan is $35 million.
American Standard Energy is a Scottsdale, Ariz.-based non-operated exploration and production company. Its shares (OTC:ASEN) closed at $4.50 apiece on Tuesday.
© 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.