Miller Energy amends $100 million loan, extending reporting deadlines

By Angela McDaniels

Tacoma, Wash., Aug. 29 - Miller Energy Resources, Inc. amended its $100 million credit facility due 2013 with an initial borrowing base of $35 million on Friday, according to an 8-K filing with the Securities and Exchange Commission.

Miller did not deliver its audited financial statements for the fiscal year ended April 30 to the lenders within 75 days of the end of the fiscal year. The amendment waives this event of default.

The deadlines for delivering the company's next two quarterly financial statements were extended to 60 days, and the deadline for delivery of its audited financial statements at fiscal year-end was extended to 90 days.

Beginning Oct. 10, the company must use 90% of its consolidated net revenues to pay certain fees and expenses first, then interest and finally principal under the loan. If a default exists, this amount will be 100% of consolidated net revenues.

The amendment also:

• Imposes additional reporting requirements on the company;

• Increases the interest rate to Libor plus 650 basis points from Libor plus 450 bps if Miller fails to satisfy some requirements related to Section 404 of the Sarbanes-Oxley Act by April 30, 2012;

• Revises the make-whole premium to exclude the waiver fee of $115,593 paid in connection with the amendment or any payments of increased interest due to a default; and

• Makes delisting from the New York Stock Exchange an event of default.

Guggenheim Corporate Funding, LLC is the administrative agent.

Miller is a Huntsville, Tenn.-based oil and natural gas company.

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