American Energy – Permian Basin to repay revolver with note proceeds

By Wendy Van Sickle

Columbus, Ohio, Oct. 19 – American Energy – Permian Basin, LLC plans to repay all borrowings outstanding under its revolving credit facility with some proceeds from a $560 million offering of senior notes due 2020, according to a press release.

In conjunction with the offering, American Energy and its lending group have agreed to amend the revolver, which will reset the borrowing base to zero, according to the release.

As of Thursday, the company said it had about $245 million of borrowings outstanding under the revolver and had about $40 million of cash and cash equivalents on hand.

Additional proceeds from the offering may be used to fund the remaining portion of a pending acquisition, to fund drilling and completion activities, related oil and gas infrastructure construction and for ongoing expenses related to daily company activities.

Based in Oklahoma City, the energy company is involved in onshore U.S. unconventional resource plays.

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