QR gets $200 million loan commitment for purchase of oil assets

By Sara Rosenberg

New York, March 19 - QR Energy LP has received a commitment for an additional $200 million of bank loans to help fund, if necessary, its acquisition of oil properties located in the Ark-La-Tex area and Michigan, company officials said in a call on Monday.

This extra commitment was put in place as a safety net, officials explained.

Other funds for the transaction will come from borrowings under the company's existing credit facility and cash on hand.

With the acquisition, the company is expecting to increase its credit facility borrowing base by $100 million.

Additionally, officials said that they will explore the possibility of tapping other capital markets to fund the purchase or pay down loan borrowings.

The company is paying $230 million in cash, subject to customary purchase price adjustments, for the assets which are being purchased from an undisclosed private seller.

Closing is expected in late April, subject to customary conditions.

QR Energy is a Houston-based partnership engaged in the acquisition, production and development of onshore crude oil and natural gas properties.

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