Crusader Energy Group Inc with $250 Million 2nd Lien Term Facilityadmin
Crusader Energy Group Inc. told the press that effective on July 18, 2008 it entered into a five-year $250 million second lien term facility with JPMorgan Chase Bank, N.A., as administrative agent. The Second Lien Term Facility replaces our existing $30 million second lien term facility with UnionBanCal Equities, Inc. The Second Lien Term Loan Facility bears interest at LIBOR (subject to a floor of 3.50%) plus 7.75% or the reference rate, as defined, plus 6.75% and matures on July 18, 2013. It is secured by substantially all of the proved oil and gas assets and all personal property of the Company and its subsidiaries and by guarantees of each of the Company’s subsidiaries.
Proceeds of the Second Lien Term Loan Facility were used to refinance outstanding debt under the 1st and 2nd lien facilities and will be used to fund the Company’s drilling activity, acquisitions and general corporate purposes.
John G. Heinen, Senior Vice President and Chief Financial Officer, “We are pleased to consummate this transaction in the face of the present turbulence in the financial markets, This facility provides us with the necessary capital to execute our business strategy for the foreseeable future.”
Oklahoma City-based Crusader Energy Group Inc. is an oil and gas company with assets focused in various producing domestic basins. The company has a primary focus on the development of unconventional resource plays which includes the application of horizontal drilling and cutting edge completion technology aimed at developing shale and tight sand reservoirs. The Crusader assets are located in various domestic basins, the majority of which are in the Anadarko Basin and Central Uplift, Ft. Worth Basin Barnett Shale, Delaware Basin, Val Verde Basin, and the Bakken Shale of the Williston Basin.
Source: Crusader Energy Group Inc.