ROK Resources provides more detail for C$75 million acquisition loan

Chicago, Jan. 4 – ROK Resources, Inc. provided more details regarding the C$75 million senior secured loan facility with a Canadian chartered bank that is supported by a commitment letter, according to a press release.

Proceeds will be used to fund the company’s acquisition of certain oil and gas assets in Southeast Saskatchewan from an intermediate energy producer.

The facility is expected to be comprised of a C$22.5 million revolver with an initial 8.15% interest rate. Interest will be calculated using the company’s debt-to-cash flow ratio.

A non-revolving term loan for C$52.5 million with at least a two-year term will have an interest rate of the Canadian Banker’s Acceptance rate plus 625 basis points.

The acquisition is expected to close around Jan. 24.

ROK Resources, based in Regina, Sask., primarily engages in exploring for petroleum and natural gas in Saskatchewan.

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