Magnum Hunter Closes Credit Facility for Eureka Hunter Pipeline

- Magnum Hunter Closes Credit Facility for Eureka Hunter Pipeline

Wednesday, August 17, 2011
Magnum Hunter Resources Corp.

Magnum Hunter's wholly-owned subsidiary, Eureka Hunter Pipeline, has closed a new credit facility totaling $150 million. The Eureka Hunter Finance Facility is comprised of two tranches: (i) a revolving credit facility in the aggregate principal amount of up to $100 million secured by a first lien on the assets of Eureka Hunter Pipeline ("Revolver") with an initial committed amount of $25 million; and (ii) a $50 million term loan secured by a second lien on such assets ("Term Loan"). All of the Term Loan must be drawn before any of the Revolver is drawn and $31 million of the Term Loan was drawn at closing yesterday. Both the Revolver and the Term Loan are "non-recourse" to the parent company, Magnum Hunter.

The proceeds from the Revolver and the Term Loan will be used to finance capital expenditures for the construction of the Eureka Hunter Pipeline system located in northern West Virginia and Ohio. Advances under the Term Loan will be limited to 60% of the project's "Total Capital" including equity and debt invested. As of August 15, 2011, Magnum Hunter has invested approximately $52 million of equity capital in the Eureka Hunter Pipeline project.

In addition, Magnum Hunter has received $21 million of net proceeds from the Term Loan Closing to repay existing indebtedness. As of August 16, 2011, Magnum Hunter had total liquidity including cash and availability under its credit facilities, including the Term Loan, of approximately $75 million, of which $55 million is available to fund its upstream capital program focused on the Company's high growth resource plays.

The applicable interest rate margin of the Revolver ranges from LIBOR plus 2.25% to LIBOR plus 3.50%. The Term Loan accrues interest at a rate of 12.50% per annum; of which 2.75% is payable in cash or Magnum Hunter restricted common stock at the sole option of Magnum Hunter. The Revolver and the Term Loan contain other terms and conditions customary for financings of this type. The Revolver has a maturity of five years from date of closing and the Term Loan has a maturity of seven years from date of closing. SunTrust Robinson Humphrey, Inc. has served as the "Lead Arranger" and SunTrust Bank will serve as "Administrative Agent" for the Revolver. PennantPark Investment Corporation is the "Lender" for the Term Loan.

Management Comments

Mr. Ronald D. Ormand, Executive Vice President and Chief Financial Officer of Magnum Hunter, commented, "The closing of the Eureka Hunter Finance Facility for the Eureka Hunter midstream assets completes one of our primary financial goals for fiscal year 2011. Eureka Hunter Pipeline now has its own primary source of financing, provided on a non-recourse basis to Magnum Hunter, and the capital necessary to complete construction and expand operations of the pipeline through fiscal year 2012. In addition, with the return of $21 million in capital from the Eureka Hunter Finance Facility, Magnum Hunter has further increased its overall financial liquidity to in excess of $75 million. The additional liquidity provides Magnum Hunter with the necessary capital to fund the Company's capital expenditure plan through the end of fiscal year 2011 and into fiscal year 2012."

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Faroe Clinches Credit Facilities for Future Growth Plans

- Faroe Clinches Credit Facilities for Future Growth Plans

Friday, July 08, 201
Faroe Petroleum plc

Faroe announced the signing of two new banking credit facilities, which provide substantial additional finance to underpin the Company's growth plans.

The two facilities are:

• NOK 1 billion (approx. £110 million) Norway Exploration Financing Facility, of which NOK 500 million (approx. £55 million) is initially committed by the participating banks, and a further NOK 500 million is available on an uncommitted "accordion" basis. Faroe Petroleum currently has approximately 20 exploration licenses offshore Norway and expects to drill 12 exploration and appraisal wells in Norway by the end of 2013. This facility is designed to have the capability of financing the majority of Faroe's exploration and appraisal costs on the Norwegian Continental Shelf. The facility will mature on 31 December 2014.
• US $250 million (approx. £156 million) Reserve Base Lending Facility, of which US $125 million (approx. £78 million) is initially committed by the banks, and a further US $125 million is available on an uncommitted "accordion'' basis. This facility is available to finance approved capital expenditure, operating costs and acquisitions. The facility will mature on June 30, 2016, with an amortizing repayment profile from June 2013.

Six participating banks have been selected and brought together as one group to provide the two facilities pro rata. The participating banks are BNP Paribas and Lloyds TSB Bank plc, as Mandated Lead Arrangers, together with Commonwealth Bank of Australia, DnB NOR Bank ASA, Royal Bank of Scotland plc and SEB. BNP Paribas are also acting as Facility Agent and Security Trustee under both facilities, with Lloyds TSB Bank plc acting as Technical and Modelling Bank under the Reserve Base Lending facility.

At 1 July 2011 the Group had cash balances of approximately £84.2m and, together with the cash flow from its existing producing assets, which now include the Blane oil field, and the forthcoming production income from the Brage, Njord, Ringhorne East and Jotun fields in Norway, the Group is well financed.

Commenting on the new facilities, Iain Lanaghan, Finance Director, said, "We are delighted to have concluded this financing exercise, and to have received such strong support from our banks, all of whom took part in a competitive process to participate in these facilities. The new facilities provide us with substantial new funding to support the growth of the Group."

"With an exciting drilling program ahead, of which the majority of wells will be drilled in Norway, the new Norway Exploration Financing Facility provides us with a powerful and efficient means of maximizing our equity participation for minimum cost. The combination of our new Reserve Base Lending facility and strong cash flow from our significantly enhanced portfolio of producing assets ensures that Faroe Petroleum is well funded for investment growth in our core areas."

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Moody's Cuts Toyota's Credit Rating to Aa3

- Moody's Cuts Toyota's Credit Rating to Aa3



Jun 28, 2011

Moody's Investors Service cut Toyota's credit rating one level to Aa3 today, the rating service's fourth highest rating.

The agency cited the company's slow slog towards profit recovery in the face of shrinking market share, a historically very strong yen, and high raw material prices.

Moody's said another downgrade was possible because Toyota's ratings "incorporate one notch of support from the country's banks and government, which are themselves under review for possible downgrade."

The company's May production levels still reflect the complete devastation wrought on the company, and the country, by the March 11 earthquake and tsunami, as worldwide production was still down 49.3% from a year ago.

Toyota said its production is up to 90% of normal levels now, and it plans to bring that number nearer to 100% in July.

Shares of Toyota Motor are trading up 0.4% at $80.06.

Toyota Motor has a potential upside of 15.4% based on a current price of $80.06 and an average consensus analyst price target of $92.4.

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Eagle Rock Energy Entered Into A Five-Year Senior Secured Credit Facility

- Eagle Rock Energy Entered Into A Five-Year Senior Secured Credit Facility



Jun 23, 2011

Eagle Rock Energy (NASDAQ:EROC) announced that it has entered into a five-year senior secured credit facility with a syndicate of banks led by Wells Fargo, N.A. as administrative agent, Bank of America, N.A. and Royal Bank of Scotland plc as co-syndication agents, and BNP Paribas as documentation agent.

Initial commitments totaled $675 million, with the ability to increase commitments up to $1.2 billion.

Jeffrey P. Wood, the Partnership's Chief Financial Officer said, "We are pleased with the support shown by our lender group, which includes several institutions continuing long-term relationships with Eagle Rock and others beginning new strategic relationships. The refinancing of our credit facility, together with our inaugural senior notes issuance last month, provides further long-term stability and financial flexibility to Eagle Rock's capital structure as we continue to focus on our growth strategy."

Eagle Rock Energy has a potential upside of 27% based on a current price of $11.02 and an average consensus analyst price target of $14.

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Ensco Ups Revolving Credit Facilities to $1.9B

- Ensco Ups Revolving Credit Facilities to $1.9B

Tuesday, June 07, 2011
Ensco plc

Ensco has increased the commitments under its revolving credit facilities to a total of $1.9 billion. The commitment under a five-year credit facility is $1.45 billion. The commitment under a separate 364-day credit facility is $450 million.

Ensco also announced that it has increased the maximum amount of its unsecured commercial paper program from $700 million to $1.0 billion. The commercial paper program is backstopped by the revolving credit facilities.

Ensco completed its acquisition of Pride International, Inc. on 31 May 2011, as previously reported. The increased credit facilities and commercial paper program will facilitate the growth of the newly-combined company.

The notes to be offered by Ensco under the commercial paper program will not be registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

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El Paso Closes Revolving Credit Facilities

- El Paso Closes Revolving Credit Facilities

Friday, June 03, 2011
El Paso Corp.

El Paso Corp. has amended and restated its revolving credit facility and renewed the El Paso Exploration & Production Company (EPEP) revolving credit facility, both of which were set to mature in 2012.

Changes to the El Paso Corporation facility include the extension of maturity to 2016, the reduction of available commitments from $1.5 billion to $1.25 billion, and credit terms which now include more flexibility on collateral support and El Paso Corporation's general partnership interest in EPB as collateral. The EP facility also now provides for an elimination of collateral support upon the loans achieving investment grade status. There were no material changes to the covenant and collateral package supporting the $1.0 billion borrowing base facility for EPEP.

The EP facility was financed through a syndication of 23 financial institutions. J.P. Morgan Securities LLC and Citigroup Global Markets Inc. acted as coordinators for the EP Facility. The EPEP facility was financed through a syndication of 31 financial institutions. BNP Paribas Securities Corp. and Scotia Capital acted as coordinators for the EPEP facility.

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S&P's Ratings Services Affirmed Credit Ratings For US, Revised Its Outlook To Negative

S&P's Ratings Services Affirmed Credit Ratings For US, Revised Its Outlook To Negative



Apr 18, 2011

Standard & Poor's Ratings Services affirmed its 'AAA' long-term and 'A-1+' short-term sovereign credit ratings on the U.S., according to a Bloomberg report.

It also revised its outlook on the long-term rating to negative from stable.

The revised outlook reflects the U.S.'s "very large budget deficits and rising government indebtedness" relative to its triple-A peers.

Pacific Rubiales Increases Revolving Credit Facility

Pacific Rubiales Increases Revolving Credit Facility

Thursday, April 14, 2011
Pacific Rubiales Energy Corp.

Pacific Rubiales has closed the amendment (the "Amendment") to its existing US $250 million unsecured revolving credit facility (the "Revolving Credit Facility"). As a result of the great interest generated amongst the lending syndicate, the amount of the Revolving Credit Facility was increased from the US $250 million initially committed by the lenders in April 2010 to US $350 million. Bank of America Merrill Lynch acted as Global Coordinator and Sole Bookrunner.

The Amendment was limited to the same lenders under the Revolving Credit Facility and, in addition to increasing its amount of the facility from US $250 million to US $350 million, under the terms of the Amendment the Company extended the term of the Revolving Credit Facility to April 2013 and reduced the applicable commitment fees and the applicable margin.

To date, the Company has not drawn down any funds from the Revolving Credit Facility and the Company does not expect to require any proceeds from the Revolving Credit Facility to fund its 2011 capital expenditure budget. The Revolving Credit Facility will be utilized as needed to take advantage of opportunities in the Colombia E&P sector that may become available and to fulfill the Company's business strategy.

The applicable margin and commitment fees of the Revolving Credit Facility will continue to be determined in accordance with the rating assigned to the Company's senior debt securities by Standard & Poor's Ratings Group and Fitch Inc. Based on the Company's current rating and expected usage, the commitment fee will be reduced from 100 bps to 75 bps and the applicable margin from 325 bps to 250 bps over LIBOR.

Subject to customary acceleration events set forth in the credit agreement relating to the Revolving Credit Facility, or unless terminated earlier by the Company without penalty, repayment of outstanding principal on the Revolving Credit Facility will be made in full on April 26, 2013.

Credit Suisse Lowers U.S. GDP Forecasts for First Half 2011

Credit Suisse Lowers U.S. GDP Forecasts for First Half 2011



Credit Suisse has revised down its U.S. GDP forecasts for the first half of 2011. The firm now expects 2.5% real GDP growth in Q1, down from its previous forecast of 3.5%. Its Q2 forecast was also revised down to 3.3% from 3.7%. However, the firm's 2011 second half forecasts remain unaltered at 3.8% and 4.0% for Q3 and Q4, respectively. Credit Suisse expects full year 2011 growth of 3.4% on a year-over-year basis and 3% on an annual average basis. This is down from its previous estimate of 3.8% and 3.3%, respectively. The firm sees 4.0% real GDP growth in 2012.

Credit Suisse issued a statement saying: The first quarter's forecast revision is mostly due to current quarter accounting. The monthly building blocks that add up to GDP have consistently printed below expectations this quarter, defying the much rosier readings from other parallel evidence on the economy (such as the ISM surveys). The list of GDP "source data" disappointments includes home sales, housing starts, capital goods shipments, non-residential construction, federal spending, and a sharp increase in the trade deficit. Most importantly, the GDP's largest building block - consumer spending - is slowing sharply on a sequential basis, on track for less than 2% growth in Q1, compared to 4% growth in Q4. Our revision to second quarter growth is partly a consequence of higher oil prices and the negative effect on real income growth. Consumer confidence gauges also fell sharply in March, presumably due to higher gasoline prices. Another reason for our Q2 downgrade is housing, particularly the 22% plunge in February housing starts. Falling starts will impact future readings on construction outlays and the associated GDP component - residential investment.