Ring Energy says it expects to increase revolver to $500 million

By Angela McDaniels

Tacoma, Wash., May 22 – Ring Energy, Inc. entered into a commitment letter on Thursday to amend its five-year senior secured revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The amended revolver is expected to increase the maximum facility amount to $500 million from $150 million, with a borrowing base of $100 million.

The maturity date is expected to be extended to five years from the initial funding date.

The amended revolver will be secured by a first-priority security interest in substantially all of the assets of the company.

SunTrust Bank is the administrative agent, and SunTrust Robinson Humphrey, Inc. is the lead arranger.

The company entered into the commitment letter in connection with its upcoming acquisition of some oil and gas assets and properties in Texas for $75 million.

The purchase price is subject to adjustments. If it is reduced, the maximum facility amount will also be reduced.

The commitment letter for the amended revolver expires on the earliest of the completion of the acquisition, the termination of the purchase agreement for the acquisition or July 31.

Ring Energy is an oil and gas exploration and production company based in Midland, Texas.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.