Kodiak increases revolver to $750 million, term loan to $100 million

By Angela McDaniels

Tacoma, Wash., Oct. 28 - Kodiak Oil & Gas Corp. increased its credit facilities in connection with the acquisition of additional oil and gas producing properties and undeveloped land, according to a company news release.

The senior secured revolving line of credit facility was increased to $750 million. The initial borrowing base is $225 million, compared with the prior-level borrowing base of $110 million.

The senior secured second-lien term loan facility was increased to a commitment of $100 million from $55 million.

The lending group for the revolver consists of Wells Fargo Bank, NA, BMO Harris Financing, Inc., KeyBank NA, Royal Bank of Canada and Credit Suisse AG. For the term loan, the credit agreement is with Wells Fargo Energy Capital, Inc. and Prudential Insurance Co. of America.

The company said the expansion of the facilities is based primarily on its drilling results to date and in part on production and reserves added through the acquisition.

The purchase price for the acquisition was $245 million. Kodiak funded the transaction with available cash balances and through borrowings under the credit facilities.

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

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