Houston Exploration uses part of proceeds from Louisiana sale to repay bank debt

New York, June 2 - Houston Exploration Co. said it used part of the proceeds from its sale of its Louisiana Gulf of Mexico assets to repay borrowings under its revolving credit facility.

The Houston-based natural gas and oil company received $530.8 million in net cash proceeds from the transaction, which closed Thursday.

Of the total, $314.2 million was paid directly to a qualified intermediary to facilitate like-kind exchange transactions under Section 1031 of the Internal Revenue Code, Houston Exploration said in an 8-K filing with the Securities and Exchange Commission.

Virtually all the remaining $216.6 million, associated with properties sold outside the like-kind exchange, was used to repay revolving borrowings.

As of Thursday, the company had $50 million outstanding on the revolver.

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