W&T Offshore gets new $300 million credit facility

By Sara Rosenberg

New York, March 16 - W&T Offshore Inc. closed on a new $300 million revolving credit facility due March 15, 2009 with an initial borrowing base of $230 million, according to an 8-K filed with the Securities and Exchange Commission.

TD Securities acted as arranger, JPMorgan and Fortis Capital acted as co-syndication agents and Harris Nesbitt and Bank of Scotland acted as co-documentation agents.

The interest rate and the commitment fee on the revolver are based on usage. If usage is less than 50% then the rate is Libor plus 125 basis points and the commitment fee is 30 basis points. If usage is greater than or equal to 50% but less than 75% then the rate is Libor plus 150 basis points and the commitment fee is 37.5 basis points. If usage is greater than or equal to 75% but less than 90% then the rate is Libor plus 175 basis points and the commitment fee is 37.5 basis points. And, if usage is greater than or equal to 90% then the rate is Libor plus 187.5 basis points and the commitment fee is 50 basis points.

Borrowings are secured by 80% of the company's oil and natural gas properties and the stock of the company's subsidiaries.

The new revolver, which closed on Tuesday, was used to replace the company's previous facility.

W&T is a Houston-based independent oil and natural gas acquisition, exploitation and exploration company.

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