This Day On The Street
Continue to site
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

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

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

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
Only $9.95
14-Days Free
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 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs