Delta Petroleum Corp. reported that it has closed on a new credit facility to help finance oil and gas exploration and development operations in 2011. The company said that Macquarie Bank Limited will provide a senior secured credit facility in the amount of $100 million. Delta Petroleum will have immediate access to $50 million of the senior secured credit facility.
The initial $50 million will be composed of two tranches. Tranche A consists of a $30 million revolving line of credit at an interest rate of Libor plus 600 basis points, or the prime rate plus 600 basis points. Tranche B consists of a $20 million advancing term loan at an interest rate of Libor plus 900 basis points, or the prime rate plus 800 basis points.
Delta Petroleum said that the new senior secured credit facility will mature on January 31, 2012, and the company is required to pay a closing fee of 2% of the principal.
Delta Petroleum is an exploration and production company focused on the Piceance Basin in Colorado. The company’s main area of development is the Vega Project where the company has more than 20,000 net acres under lease.
For more information on the company, go to www.deltapetro.com