RAM Energy gets $450 million credit facility

By Sara Rosenberg

New York, Dec. 5 - RAM Energy Resources Inc. closed on a new $450 million senior secured credit facility, according to an 8-K filed with the Securities and Exchange Commission Wednesday.

Guggenheim Corporate Funding, LLC acted as the arranger and administrative agent on the deal that was completed on Nov. 29, with Wells Fargo Foothill the documentation agent, and WestLB and CIT Capital as co-syndication agents.

The facility consists of a $200 million five-year term loan priced at Libor plus 750 basis points and a $250 million four-year revolver with pricing that can range from Libor plus 125 bps to 200 bps based on usage.

There is a $50 million accordion feature under the term loan.

The initial borrowing base under the revolver is $175 million.

Proceeds were used to replace the company's previous $300 million credit facility, to help fund the acquisition of Ascent Energy Inc. and for working capital and other general corporate purposes.

Security is substantially all properties and assets of the company and its subsidiaries.

Financial covenants include minimum interest coverage ratio, maximum leverage ratio and a required ratio of asset value to total indebtedness.

RAM is a Tulsa, Okla.-based independent energy company.

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