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Thursday, 09/22/2011 7:17:31 PM

Thursday, September 22, 2011 7:17:31 PM

Post# of 79
ASEN Closes $300M Senior Credit Facility





American Standard Energy Corp. (OTCBB:ASEN.ob - News) (the "Company") today announced the closing of a new $300 million senior, secured credit facility with Macquarie Bank Limited ("Macquarie Bank"). The credit facility consists of a $100 million three-year revolving line of credit and a $200 million three-year term loan.

The revolving line of credit may be used to provide working capital for exploration and production operations, and to acquire proven producing oil and gas properties. This facility will fund up to $100 million in working capital and acquisition financing. Initial availability provides for borrowing up to $12 million, which was fully drawn at closing. This availability is expected to increase as the Company acquires additional producing leases from the XOG Group, third party sellers, and as its existing and future drilling activities result in proven producing leases.

The term loan provides an additional $200 million in development capital. This tranche is available to be drawn on for 18 months after closing, and is primarily intended to fund capital expenditures for drilling and exploration of oil and gas properties. This facility can eventually convert to additional borrowings under the revolving line of credit facility as drilling activity increase ASEN's current oil and gas production. Initial availability under the term loan is $35 million, subject to Macquarie Bank's approval of a development plan to be proposed by the Company post-closing with the expectation that additional drilling programs will be added to the term loan commitment throughout its availability. Borrowings under the term loan may be converted subject to Macquarie Bank's approval into borrowings under the revolving line of credit as the Company's drilling activity increases its oil and gas production.

Borrowings under the revolving line of credit, if any, will bear interest at a spread ranging from 2.75% to 3.25% over the London Interbank Offered Rate (LIBOR) or prime rate, as the case may be, based upon the percentage of borrowing base that is advanced at any given time. For the term loan, borrowings will bear interest at a spread of 7.50% over LIBOR or prime rate, as the case may be.

Scott Feldhacker, the Company's Chief Executive Officer, said, "This credit facility represents a major milestone for the Company. In our first year of operations, we rapidly grew daily production from less than 50 BOE (barrels of oil equivalent) to a projected 2,000 BOE per day by the end of 2011. We expect that it will enable us to continue to increase our activities in the Permian Basin, Eagle Ford, and Williston Basin. We also expect to utilize the credit facility to accelerate our acquisition proven producing strategy and expand our self-directed drilling programs."

Scott Mahoney, the Company's Chief Financial Officer, added, "We are pleased with this facility, as it we expect that it will provide significant non-dilutive growth capital to the Company. We believe that this credit facility, combined with our forecasted cash flows from production, will enable the Company to fund an aggressive growth plan through the end of fiscal 2012 at a competitive cost of capital."


This is not an offer to buy or sell securities or any kind of investment advice. Oil investment carries very high risks so consult a licensed professional making any decisions. My resume is real time on Twitter @TurnKeyOil.

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