RAM Energy Resources Reports Borrowing Base Reaffirmed by Commercial Lenders

RAM Energy Resources Reports Borrowing Base Reaffirmed by Commercial Lenders

RAM Energy Resources, Inc.reported today that the company’s existing borrowing base of $175.0 million on its revolving credit facility was reaffirmed by the company’s commercial lenders as a result of RAM’s regularly scheduled semi-annual borrowing base redetermination.

$175 Million Borrowing Base Reaffirmed

The company’s $250.0 million revolving credit facility had a borrowing base of $175.0 million in April 2009. As a result of the semi-annual borrowing base redetermination, RAM’s commercial lenders reaffirmed the borrowing base of $175.0 million based on the value of the company’s proved reserves at June 30, 2009. Funds advanced under the revolver may be paid down and re-borrowed during the term of the revolver which matures November 2011. At June 30, 2009 the outstanding balance under the revolving facility was $142.0 million, with remaining availability of $32.8 million, net of $0.2 million for outstanding letters of credit. The balance of the term loan portion of the credit facility was $113.4 million at June 30, 2009 with a maturity of November 2012. The weighted average LIBOR-based interest rate on total outstanding borrowings under both the revolver and term loan is estimated to be approximately 8.0 percent during the third quarter 2009.

“The reaffirmation of our borrowing base and the availability remaining under our revolving credit facility provide an important degree of liquidity and flexibility,” said Larry Lee, President and CEO. “Having approximately 60 percent of our proved reserves categorized as proved developed producing coupled with the cash flow yield from our production mix, 59 percent of which is driven by the price of oil, continues to be seen as a strong plus by our lenders,” added Mr. Lee.

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