Venoco pushes out management-led buyout financing deadline to Sept. 13

By Sara Rosenberg

New York, Sept. 4 - Venoco Inc. extended the financing date to Sept. 13 under its agreement to be bought out by chairman and chief executive officer Timothy M. Marquez, according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

The company previously said that it expects to get a $300 million credit facility, comprised of a $125 million first-lien revolver, of which $21.5 million will be drawn, and a $175 million second-lien term loan (B1/B+).

Other funds for the transaction are anticipated to come from a $210 million asset sale and $240 million in capital raises.

The credit facility and asset sale are conditioned upon closing of the buyout.

Total debt to adjusted EBITDA would be 3.6 times.

Under the agreement, Marquez is buying the company for $12.50 per share in cash. The total enterprise value, including debt, is roughly $1.5 billion.

The buyout has already been approved by shareholders. Closing remains subject to a financing condition and other customary conditions.

Venoco is a Denver-based independent energy company primarily engaged in the acquisition, exploration, exploitation and development of oil and natural gas properties.

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