Delta Petroleum Corporation Announces Receipt Of Commitment Letter For New Senior Secured Credit Facility
DENVER, Nov. 23, 2010 /PRNewswire-FirstCall/ -- Delta Petroleum Corporation (the "Company" or "Delta") (Nasdaq: DPTR), an independent oil and gas exploration and development company, announced today that it has received a commitment letter for a new senior secured credit facility with Macquarie Bank Limited ("Macquarie").
The terms of the commitment letter provide for a $100 million credit facility, which contemplates an initial commitment of up to $50 million comprised of a $30 million revolving line of credit (Tranche A) and a $20 million advancing term loan (Tranche B). The commitment letter contemplates that the facility will bear interest of Libor plus 7% or Prime plus 6% for Tranche A borrowings and Libor plus 9% or Prime plus 8% for Tranche B borrowings, and be subject to a 2% closing fee on the initial commitment amount. It is expected that the facility will mature on January 31, 2012. Once a credit agreement is signed and the new credit facility is in place, borrowings will be made from this new facility to repay the outstanding balance on the Company's existing credit facility. The existing credit facility will then be terminated.
Carl Lakey, President and CEO of Delta Petroleum stated, "We are pleased to announce the receipt of a commitment letter for a new credit facility from Macquarie. We will promptly begin to work toward signing a credit agreement and closing on the facility as soon as possible. Macquarie brings a wide breadth of experience in the industry and in the capital markets. We look forward to building a mutually beneficial relationship with them as both a valued financial partner and advisor in the future."
ABOUT DELTA PETROLEUMDelta Petroleum Corporation is an oil and gas exploration and development company based in Denver, Colorado. The Company's core areas of operations are in the Rocky Mountain region, where the majority of its operated properties and long-term growth prospects are located. Its common stock is listed on the NASDAQ Global Market System under the symbol "DPTR." FORWARD-LOOKING STATEMENTS Forward-looking statements in this announcement are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, without limitation, the Company's anticipated entry into a new credit facility. Readers are cautioned that all forward-looking statements are based on management's present expectations, estimates and projections, but involve risks and uncertainty, including without limitation, uncertainties in the closing process under the definitive agreements, the ability to obtain necessary third party consents, as well as general market conditions, competition and pricing. Please refer to the Company's report on Form 10-K for the year ended December 31, 2009 and subsequent reports on Forms 10-Q and 8-K as filed with the Securities and Exchange Commission for additional information. The Company is under no obligation (and expressly disclaims any obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise. For further information contact the Company at (303) 293-9133 or via email at firstname.lastname@example.org. SOURCE Delta Petroleum Corporation
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