Jun. 24, 2010 (Business Wire) -- ATP Oil & Gas Corporation (NASDAQ: ATPG) today announced that it has priced a new $150 million First Lien Senior Secured Term Loan facility. The facility replaces the existing undrawn $100 million revolving credit facility and additionally provides an option to increase the first lien loan by up to an additional $350 million (for a total of $500 million) as the company’s Adjusted Consolidated Net Tangible Assets value grows. The facility matures October 15, 2014 and carries an annual coupon of 11%. Other features include the elimination of financial maintenance covenants and the ability to reinvest within one year 100% of asset sale proceeds into future developments. Closing, which is anticipated no later than June 30, 2010, is conditional on normal closing documents and deliverables.
Chairman and CEO T. Paul Bulmahn stated, “With this new facility, ATP has added more liquidity, flexibility and extended the maturity of its first lien debt. This structure, which is free of financial maintenance covenants, provides the necessary flexibility for us to focus on developing oil and gas assets and creating shareholder value. In addition, the facility offers provisions to expand it incrementally by $350 million which would increase the size of the loan to $500 million as the value of our assets grow. ATP is financially stronger today to capitalize on opportunities that should arise due to the adversity and challenges currently facing the offshore oil and gas industry.”
About ATP Oil & Gas Corporation
ATP Oil & Gas is focused on development and production of oil and natural gas in the Gulf of Mexico and the North Sea. The company trades publicly as ATPG on the NASDAQ Global Select Market. For more information about ATP Oil & Gas Corporation, visit www.atpog.com.
Forward-looking Statements
Certain statements included in this news release are “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. ATP cautions that assumptions, expectations, projections, intentions, or beliefs about future events may, and often do, vary from actual results and the differences can be material. Some of the key factors which could cause actual results to vary from those ATP expects include changes in natural gas and oil prices, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as our ability to access them, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting our business. More information about the risks and uncertainties relating to ATP's forward-looking statements is found in our SEC filings.
