Voyager Oil & Gas Forges New $150 Million Credit Facility
Voyager Oil & Gas, Inc. (NYSE: VOG) today announced that it has closed on a $150 million credit facility with Macquarie Bank Ltd. The facility will be used to retire existing debt and allow Voyager to accelerate development and production growth in the Williston Basin for the purpose of Bakken and Three Forks well development, production growth and acquisition in the Williston Basin.
The credit facility, completed on February 10, 2012, is a two-tranche loan secured by all of the Company's oil and gas assets and remaining other real and personal property. The first tranche (Tranche A) has a face amount of $100 million and an initial borrowing base of $15 million. The annual interest cost, which is dependent on the usage of Tranche A and the type of loan selected, is currently 3.25% above the applicable London Interbank Borrowing Rate (LIBOR). The second tranche (Tranche B) provides up to $50 million for certain development and acquisitions and carries annual interest of LIBOR plus 7.5%. Upon completion of Voyager's semi-annual reserve updates, portions of Tranche B may be converted to Tranche A upon the satisfaction of certain conditions. The Company did not issue equity or provide royalty consideration in connection with the Macquarie facility.
