NGP Capital Resources Company Announces $75 Million of New Investment Activity
NGP Capital Resources Company (NASDAQ: NGPC) (the "Company") today announced the completion of two transactions that closed in the first two weeks of July, totaling $75 million. These investments were funded with cash on hand and borrowings under the Company's revolving credit facility.
On July 3, 2012, the Company advanced an additional $25.0 million to ATP Oil & Gas Corporation ("ATP") of Houston, Texas, under its limited-term overriding royalty interest ("ORRI") in certain offshore oil and gas producing properties operated by ATP in the Gulf of Mexico. As consideration for this additional investment with ATP, the Company obtained a 5.0% limited-term ORRI in ATP's Telemark properties, to supplement the 10.8% ORRI in ATP's Gomez field properties. Royalty payments received under this arrangement are first applied to interest at a rate of 13.2%, with any excess being applied to principal. The Company previously advanced $25.0 million to ATP under this arrangement in June 2011 and an additional $15.0 million in December 2011. From June 2011 through June 30, 2012, ATP has paid $3.0 million of interest to the Company and repaid $22.1 million of principal, and the pro forma balance outstanding on this investment is $42.9 million.
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