RAM Energy Resources to pay down bank debt with asset sale proceeds

By Sara Rosenberg

New York, Aug. 3 - RAM Energy Resources Inc. plans to repay borrowings under its senior secured credit facility using proceeds from the sale of a majority interest in its Electra/Burkburnett field to Argent Energy Trust, according to a news release.

The balance outstanding under the credit facility at June 30 was $205 million, comprising a $75 million term loan priced at Libor plus 900 basis points and $130 million under a revolver priced at Libor plus 300 bps.

The company expects to prepay the term loan in full, and use any remaining proceeds to pay down the revolver.

Closing on the sale is expected in early October, subject to Ardent completing an initial public offering of its trust units in Canada and the satisfaction of other closing conditions.

RAM is a Tulsa, Okla.-based oil and natural gas company.

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