Stone Energy amends loan, permitting sale of up to $150 million notes

By Sara Rosenberg

New York, Nov. 12 - Stone Energy Corp. amended its credit facility, allowing for the sale of up to $150 million in unsecured notes, according to an 8-K filed with the Securities and Exchange Commission on Friday.

The amendment provides that on the date of the issuance of any additional debt, the borrowing base under the credit facility will be automatically reduced by an amount equal to 30% of the amount of the new debt.

The amendment was completed on Nov. 9.

Bank of America is the administrative agent on the deal.

Also on Friday, the company announced plans to sell $100 million of 8 5/8% senior notes and use the proceeds to repay amounts under its credit facility.

Remaining proceeds will be used for general corporate purposes, including the payment of amounts due related to the acquisition of additional lease acreage in Appalachia.

Stone Energy is a Lafayette, La.-based oil and natural gas company.

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