NGP Capital Resources Company (NGPC) announced the completion of two transactions that closed in the first two weeks of July, totaling $75 million. These investments were funded with cash on hand and borrowings under the Company's revolving credit facility.
On July 3, 2012, the Company advanced an additional $25.0 million to ATP Oil & Gas Corporation of Houston, Texas, under its limited-term overriding royalty interest in certain offshore oil and gas producing properties operated by ATP in the Gulf of Mexico. As consideration for this additional investment with ATP, the Company obtained a 5.0% limited-term ORRI in ATP's Telemark properties, to supplement the 10.8% ORRI in ATP's Gomez field properties. Royalty payments received under this arrangement are first applied to interest at a rate of 13.2%, with any excess being applied to principal. The Company previously advanced $25.0 million to ATP under this arrangement in June 2011 and an additional $15.0 million in December 2011. From June 2011 through June 30, 2012, ATP has paid $3.0 million of interest to the Company and repaid $22.1 million of principal, and the pro forma balance outstanding on this investment is $42.9 million.
On July 10, 2012, the Company acquired $50.0 million of redeemable Preferred Units in a private oil and gas limited partnership engaged in the acquisition, exploration and development of oil and natural gas properties in South Louisiana and the shallow waters of the Gulf of Mexico. The Partnership is a well-established Gulf Coast operator and the purchase of the Preferred Units is our third investment with the management team of the Partnership. The Preferred Units earn quarterly cash dividends, plus an additional cash payment or limited partnership interest distributable upon redemption.
Steve Gardner, President and CEO stated, "We are pleased to enter into these two new investments, each of which our investment team has been working on for several months. Both ATP and the Partnership are experienced operators with whom we have successfully invested multiple times, and we are pleased to do so once again. These transactions increase our total new investments in targeted portfolio companies in 2012 to over $111 million and increase the current fair value of our targeted investment portfolio to approximately $225 million on a pro forma basis. At this point, we have fully reinvested the funds from the high level of redemptions we experienced in 2011 and are currently on leverage. We look forward to continued investment activity for the balance of the year."
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