This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

RAM Energy Resources Announces Agreement In Principle To Sell A Majority Stake In The Company’s Electra/Burkburnett Field; Proceeds To Reduce Debt

Stocks in this article: RAM

RAM Energy Resources, Inc. (Nasdaq: RAM) today announced that it has reached an agreement in principle to sell a majority interest in the company’s Electra/Burkburnett field, located in Wichita and Wilbarger Counties, Texas, to Argent Energy Trust, a recently formed Canadian energy trust. Argent has filed a preliminary prospectus with the Canadian regulatory authorities for an initial public offering of its trust units in Canada. The preliminary prospectus describes Argent’s intent to acquire an undivided 90% interest in RAM’s Electra/Burkburnett property with a portion of the IPO proceeds and sets out the expected terms of the transaction. The sale is contingent upon the successful completion of the IPO, the negotiation and execution of a definitive purchase and sale agreement and the negotiation and execution of an agreement for the further development of the property with RAM continuing to serve as operator following the closing.

RAM plans to use the anticipated proceeds from the sale of its working interest in the Electra/Burkburnett properties to reduce the indebtedness outstanding under the company’s senior secured credit facilities. The balance outstanding under the facilities at June 30, 2011 was $205 million, composed of $75 million of term debt bearing an interest rate of LIBOR plus 9% and $130 million under the revolving credit facility with a current usage-based interest rate of LIBOR plus 3%. RAM expects to apply $75 million of the sale proceeds to repay in full the high-cost term loan facility, with the balance, less fees, prepayment premiums and other transaction expenses, applied to reduce current borrowings under the revolver. Closing would be expected to occur sometime in early October 2011, provided a successful completion of the Argent IPO and the satisfaction of all closing conditions transpire.

The offering of trust units of Argent Energy Trust will be made within the United States only by Argent to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”).

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

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