Carbon Appalachia borrows $20.4 million from revolver for acquisition

By Sarah Lizee

Olympia, Wash., Oct. 2 – Carbon Natural Gas Co. said Carbon Appalachia Enterprises, LLC borrowed $20.4 million from its senior secured asset-based revolving credit facility with LegacyTexas Bank and East West Bank to help fund an acquisition, according to an 8-K filing with the Securities and Exchange Commission.

On Sept. 29, Carbon Appalachian Co. LLC, a venture owned by Carbon Natural Gas, and two institutional investors completed the acquisition of natural gas producing properties, natural gas gathering pipelines and related facilities located predominantly in West Virginia.

Funds from the facility were used to help pay the purchase price, which was $41.3 million.

Denver-based Carbon Natural Gas owns and operates oil and natural gas and oil interests in the Appalachian and Illinois Basins of the United States.

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