Ring Energy Inc (REI)

[Helter Skelter]

Ring Energy just (17:22:17, SEC accepted) filed an 8K...let's see what it does to the pps ($11.32)...thanks...

Purchase and Sale Agreement

On May 21, 2015, Ring Energy, Inc. (“Ring”) entered into a purchase and sale agreement (the “Purchase Agreement”), dated effective May 1, 2015, with Finley Production Co., LP, BDT Oil & Gas, LP, Metcalfe Oil, LP, Grasslands Energy LP, Buffalo Oil & Gas, LP and Finley Resources, Inc., as sellers (collectively, “Sellers”), to acquire oil and gas assets (the “Acquisition”). The assets to be acquired by Ring under the Purchase Agreement consist of oil and gas assets and properties, which are located in the Ford West Field and Ford Geraldine Unit in Reeves and Culberson Counties, in the State of Texas. Under the terms of the Purchase Agreement, Ring agreed to acquire the oil and gas assets from Sellers for a purchase price of $75,000,000, subject to customary purchase price adjustments based on, among other things, environmental and title defects, if any. Upon the execution of the Purchase Agreement, Ring deposited $7,500,000 in escrow pending closing. SunTrust Robinson Humphrey, Inc. served as exclusive financial advisor for Ring on the Acquisition.

Credit Facility Commitment

On May 21, 2015, in connection with its entry into the Purchase Agreement, Ring entered into a commitment letter with SunTrust Bank, as administrative agent, and SunTrust Robinson Humphrey, Inc., as lead arranger, to amend Ring’s five year senior secured revolving credit facility (the “Credit Facility”). The amended credit facility (the “Amended Credit Facility”) is expected to increase the maximum facility amount from $150,000,000 to $500,000,000, with a borrowing base of $100,000,000, subject to reduction in the event that the purchase price is reduced in accordance with the terms of the Purchase Agreement. The maturity date is expected to be extended to five (5) years from the date on which all conditions are met and the initial funding has occurred under the Amended Credit Facility. The Amended Credit Facility is expected to contain customary affirmative and negative covenants and restrictions typical for a senior secured borrowing base credit facility. The Amended Credit Facility will be secured by a first priority security interest in substantially all of the assets of Ring, including the assets acquired in the Acquisition.

Link... > REI 8K FILED 05/22/2015