This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Gasco Energy Announces Amended Credit Agreement

DENVER, Feb. 2 /PRNewswire-FirstCall/ -- Gasco Energy (NYSE Amex: GSX) today announced an amendment to its Credit Agreement led by JPMorgan.

Amended Credit Agreement

On February 1, 2010 Gasco entered into the Ninth Amendment to the Company's Credit Agreement with the lenders (the "Lenders") thereunder pursuant to which the Credit Agreement was amended, among other things, to no longer require special redeterminations of the Company's borrowing base.  Borrowing base redeterminations will now revert to the regular redetermination schedule of every six months on or about May 1 and November 1 each year.  Additionally, the interest rate margin (as more fully described below) was increased by 0.25% effective February 1, 2010.

Furthermore, the Ninth Amendment includes a reduction of the Company's borrowing base to $16 million from $35 million to be effective April 1, 2010.  The Company anticipates using a portion of the expected $23 million in gross cash proceeds from its recently announced asset sales (expected to close in the first quarter of 2010) to repay the outstanding loans in an amount sufficient to conform to the reduced borrowing base.  As of January 31, 2010, the Company had cash on hand of approximately $11 million and had outstanding borrowings under its credit facility of approximately $35 million.

Interest on borrowings under the Amended Credit Agreement accrues at variable interest rates at either, at Gasco's election, a Eurodollar rate or an alternate base rate.  The Eurodollar rate is calculated as LIBOR plus an applicable margin that varies from 2.75% (for periods in which the Company has utilized less than 50% of the borrowing base) to 3.75% (for periods in which the Company has utilized greater than 90% of the borrowing base).  The alternate base rate is calculated as (1) the greater of (a) the Prime Rate, (b) the Federal Funds Effective Rate plus 2.00% or (c) the Adjusted LIBO Rate for a one month interest period on such day plus 1%, plus (2) an applicable margin that varies from 1.75% (for periods in which the Company has utilized less than 50% of the borrowing base) to 2.75% (for periods in which the Company has utilized greater than 90% of the borrowing base).  Gasco elects the basis of the interest rate at the time of each borrowing; however, under certain circumstances, Gasco's lender may require it to use the non-elected basis in the event the elected basis does not adequately and fairly reflect the cost of making such loans.  In addition, Gasco is obligated to pay a commitment fee of 0.50% under the Credit Agreement quarterly in arrears based on a percentage multiplied by the daily amount that the aggregate commitments exceed borrowings under the agreement.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
GSX $0.02 0.00%
AAPL $130.42 0.00%
FB $80.41 0.00%
GOOG $555.48 0.00%
TSLA $207.19 0.00%

Markets

DOW 18,214.42 -10.15 -0.06%
S&P 500 2,110.74 -3.12 -0.15%
NASDAQ 4,987.89 +20.7530 0.42%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs