Houston Exploration gets $750 million amended, restated revolver

By Sara Rosenberg

New York, Dec. 1 - The Houston Exploration Co. closed on a $750 million five-year amended and restated revolving credit facility, according to an 8-K filed with the Securities and Exchange Commission Thursday.

Wachovia Bank is the administrative agent on the deal, The Bank of Nova Scotia and Bank of America co-syndication agents, and BNP Paribas and Comerica Bank co-documentation agents.

Interest rates on the revolver can range from Libor plus 125 to 175 basis points and the commitment fee can range from 30 to 50 bps, depending on use.

There is a $100 million accordion feature.

Security is onshore natural gas and oil assets as well as certain other assets.

Financial covenants include a ratio of EBITDA to cash interest payments of at least 3.00 to 1.00, a ratio of total debt to EBITDA of not more than 3.50 to 1.00 and that the company hedge no more than 85% of total proved reserves during any calendar year.

The facility, which closed Nov. 30, has an initial borrowing base of $600 million.

At close, the company drew down $142.7 million under the revolver to help fund the acquisition of some interests in natural gas and oil producing properties and undeveloped acreage in four fields located in South Texas from Kerr-McGee Oil & Gas Onshore LP and Westport Oil and Gas Co. LP.

Houston Exploration is a Houston-based company that engages in the exploration, development, exploitation and acquisition of natural gas and oil reserves properties.

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