Range Resources to use bank borrowings to help fund Appalachian asset purchase

By Sara Rosenberg

New York, Nov. 23 - Range Resources Corp. plans to use bank borrowings, along with a possible equity and/or subordinated debt offering, to finance the acquisition of $219 million of additional Appalachian oil and gas properties through the purchase of a private company, according to a company news release.

Furthermore, the company anticipates that the banks will increase the borrowing base under its $600 million revolving credit facility because of this acquisition. As of Oct. 26, the borrowing base was calculated at $500 million. There is about $320 million outstanding under the revolver.

"The banks are considering an increase. This company that's being purchased has an existing credit facility, so these are pledged. Three of the four banks that are in the existing facility are in our bank group, so we anticipate an increase accordingly," company officials said during a conference call Tuesday.

"By the time they increase the borrowing base, we'll be able to close this transaction, if we choose, with our bank credit facility. That will be step one. That's more of a safety net. We're going to look at alternative financing," officials said in the call.

The transaction is expected to close by the end of the year.

Range Resources is a Fort Worth, Texas, independent oil and gas company.

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