QEP obtains $300 million five-year term loan with extension option

By Marisa Wong

Madison, Wis., April 20 - QEP Resources, Inc. entered into a $300 million term loan agreement on April 18, according to an 8-K filed Friday with the Securities and Exchange Commission.

The term loan matures on April 18, 2017. QEP has a one-year extension option.

The loan may be drawn in two advances on or before June 30.

Interest accrues at Libor plus 150 basis points to 225 bps. The margin is based on the company's ratio of consolidated funded debt to consolidated EBITDAX.

Proceeds may be used to refinance existing debt and for general corporate purposes, including working capital and capital expenditures.

The term loan contains representations, warranties, covenants and events of default substantially similar to those of the company's revolving credit agreement dated Aug. 25, 2011.

Wells Fargo Bank, NA is the administrative agent. SunTrust Robinson Humphrey Inc., Wells Fargo Securities, LLC, BBVA Compass, Citigroup Global Markets Inc. and U.S. Bank NA are the joint lead arrangers and joint bookrunners. SunTrust Bank and Compass Bank are co-syndication agents, and Citibank, NA, U.S. Bank and Bank of Tokyo Mitsubishi UFJ, Ltd. are co-documentation agents.

QEP is a Denver-based natural gas and oil exploration and production company.

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