Finance - Debt
The loan will mature seven years after closing.
The sale is scheduled to settle Jan. 23.
In April, lenders will recalculate the value of properties that energy companies staked as loan collateral, Bloomberg said.
The offering is in connection with its proposed merger with Atlas Pipeline Partners.
The company is considering tapping the loan market as it faces a potential reduction of the credit line when it's reset in April.
Funds will be used to purchase oil and gas assets in the D-J Basin.
Borrowings outstanding under the company’s reserve-based credit facility currently total $42.5 million.
The new second lien secured term loan provides Resolute with significantly enhanced liquidity and capital resources, CEO says.
The next redetermination is scheduled for spring 2015.
Risk from falling commodity prices might cause bondholders to exercise their cash options.
The facility provides a significant amount of liquidity while offering great optionality to take advantage of current market conditions.
Estimated capital costs for the proposed liquefaction project of $11.5 billion to $12.0 billion.