NEW YORK (TheStreet) -- Shares of Resolute Energy (REN) rose in early afternoon trading Wednesday after the company announced it had entered into an agreement with Highbridge Principal Strategies for a $150 million second lien secured term loan.
The loan matures no later than November 2019 and allows Resolute Energy to issue up to $200 million of additional second lien debt for 60 days after the initial closing.
Resolute Energy, an independent oil and gas company, has also altered its revolving credit facility as part of the second lien financing transaction.
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The company expects net proceeds from the loan to be approximately $134 million and intends to use the proceeds to repay a portion of the outstanding borrowings under the company's senior revolving credit facility.
Separately, TheStreet Ratings team rates RESOLUTE ENERGY CORP as a "sell" with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate RESOLUTE ENERGY CORP (REN) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself."