RAAM’s Century Exploration units enter $85 million restated term loan

By Marisa Wong

Madison, Wis., Sept. 16 – RAAM Global Energy Co.’s wholly owned subsidiaries, Century Exploration New Orleans, LLC, Century Exploration Houston, LLC and Century Exploration Resources, LLC, entered into a fifth amended and restated credit agreement on Sept. 12 for an $85 million term loan facility, according to an 8-K filing with the Securities and Exchange Commission.

Wilmington Trust, NA is the administrative agent.

Interest is equal to Libor plus 650 basis points.

The facility matures on Sept. 12, 2016.

The credit agreement requires the companies to maintain the following financial covenants: a minimum current ratio of 1.0 to 1.0 as of the end of each fiscal quarter; a maximum first-lien leverage ratio of 2.0 to1.0 as of the end of each fiscal quarter for the four immediately preceding fiscal quarters; and a minimum PDP asset coverage ratio of 1.0 to 1.0 as of Jan. 1, 2015 and 1.1 to 1.0 as of April 1, 2015, July 1, 2015, Jan. 1, 2016 and July 1, 2016.

The credit agreement is secured by a first lien on substantially all of the companies’ real and personal property.

Loan proceeds were or will be used to repay all expenses, fees or indemnities outstanding under the fourth amended and restated credit agreement dated Nov. 29, 2011 with MUFG Union Bank, NA as administrative agent, to finance capital expenditures associated with the subsidiaries’ oil and gas properties and to provide working capital for the companies’ operations.

RAAM is a Lexington, Ky.-based oil and gas company.

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