OKLAHOMA CITY, Dec. 20, 2012 (GLOBE NEWSWIRE) -- PostRock Energy Corporation ("PostRock" or the "Company") (Nasdaq:PSTR) today announced that it had secured a new four-year revolving credit facility (the "Facility"). Citibank acted as Agent, Cadence Bank, Compass Bank and OneWest Bank as Co-Agents and Texas Capital Bank as a participant. The Facility's initial borrowing base was set at $90 million, of which $61.3 million was outstanding at closing, net of cash on hand. The Facility was structured as an amendment to the existing facility to minimize costs. In the future, if the value of the Company's oil and gas properties justifies it, the borrowing base under the Facility could be increased up to $200 million.
Interest on the Facility will be based on LIBOR plus 2.50% to 3.25%, depending on outstandings. The borrowing base will be redetermined semi-annually in April and October based on the banks' assessment of PostRock's proved oil and gas reserves. The first borrowing base redetermination will take place in April of 2013.
The Company also completed the closing of the previously announced $13 million investment by White Deer Energy L.P.Management Comment Terry W. Carter, PostRock's President and Chief Executive Officer, said, "We are extremely pleased with the refinancing. It is a testament to the substantial progress made over the last few years and the growth opportunities we believe lie ahead. For the first time in PostRock's recent history, we have a single fully conforming debt facility and ample liquidity. This reflects a better than 70% reduction in debt in the last 2 ½ years. The successful refinancing could not have been accomplished without the confidence and support of our new lenders. Just as importantly, the willingness of our former bank group to work with us over the past four years could not have been more appreciated. It was a challenging period and the leadership and support of our agent, Royal Bank of Canada, along with all of the other participant banks was nothing short of exceptional."