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Kodiak Oil gets expansion of credit facilities, pays down revolver
By Angela McDaniels
Tacoma, Wash., July 18 - Kodiak Oil & Gas Corp. received a $50 million increase in the amounts available for borrowing under its credit facilities, according to a company news release.
The amount available for borrowing under the company's first-lien senior secured revolving credit facility with Wells Fargo Bank, NA was increased to $110 million from $75 million.
The amount available for borrowing under the company's second-lien senior secured term loan with Wells Fargo Energy Capital, Inc. was increased to $55 million from $40 million.
The additional $15 million borrowed under the term loan was used to reduce the outstanding balance of the revolver. As a result, the company's borrowings under the revolver and the term loan are $60 million and $55 million, respectively.
The company said the expansion of the credit facilities was based primarily on its drilling results to date and, in part, on production and reserves added through acquisitions.
Additional revolver paydown
In a separate news release, the company said it is beginning a public offering of stock and will use some of the proceeds to repay debt outstanding under the revolver.
The company is selling 20 million shares. At Friday's closing share price of $6.58 (NYSE Amex: KOG), those shares would be worth $131.6 million.
The company expects to grant the underwriters an over-allotment option for 3 million shares.
Proceeds will also be used to fund capital expenditures related to drilling, development and infrastructure and for general corporate purposes, including financing the potential acquisition of oil and gas properties.
Kodiak is an oil and gas company based in Denver.
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