Finance - Debt
Proceeds from an $85 million senior debt facility will refinance existing debt and complete capex projects in mining and processing facilities in the Eagle Ford and Permian Basin.
The company is in the process of obtaining a loan and negotiating to sell noncore assets as well as interest in the North Slope that it acquired in 2014.
In an area where Goodrich spends no capex, the company sold 2,850 boe/d in production in the Eagle Ford but apparently did not receive credit for its undeveloped acreage.
The price of WTI crude is down 18% this month, raising fears that banks will cut lines of credit in this autumn’s next biannual review of asset-based revolvers, Reuters said.
After the annual review by its lender, the facility was renewed at an unchanged CA$8.5 million, and unchanged terms. The company has about CA$6.5 million in net debt.
Samson Resources Corp.’s lenders target restructuring deal for $4.15 billion debt. A $110 million interest payment on bonds is due Aug. 15, people with knowledge of private matter told Bloomberg.
Milagro wants to sell its assets and 1,200 wells to White Oak Resources VI LLC, a company that acquires producing properties on the Gulf Coast of Texas and Louisiana.
The 7.50% notes are due 2020, and the 8.25% notes are due 2023. The notes were sold to the public at par. The offering is scheduled to close July 22.
Borrowing base will increase to CA$300 million, up from CA$200 million. Facilities now mature May 29, 2016, and if the syndicate approves, they can be extended for 364 additional days.
On July 15, there was CA$9.9 million drawn.
Shale companies spending far more than they make rely on debt. Oil’s 47% plunge over the last year has made it tougher for drillers to pay their debts, Bloomberg said.
The notes are due in 2022, and under an indenture will be a single class of debt securities with $550 million of identical notes issued on Nov. 13, 2014.