Kodiak Oil & Gas plans $135 million increase to credit facilities

By Sara Rosenberg

New York, Oct. 3 - Kodiak Oil & Gas Corp. has received a commitment for a $115 million increase in its revolving credit facility and a $20 million increase to its senior secured second-lien term loan, according to a news release.

Wells Fargo Bank provided the revolver commitment and Wells Fargo Energy Capital Inc. provided the second-lien loan commitment.

With the increases, the revolver would be sized $225 million and the second-lien term loan would be sized at $75 million.

Proceeds from the additional debt, along with available cash balances, will be used to fund the roughly $235 million acquisition of producing properties and undeveloped leasehold in the Williston Basin from BTA Oil Producers LLC.

Closing on the transaction is expected to occur on or before Oct. 28, subject to customary conditions.

Documentation for the expanded credit facilities is expected to be executed simultaneously with the closing of the acquisition.

Kodiak Oil & Gas is a Denver-based energy exploration and development company.

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