ATP Oil & Gas obtains $110 million loan

By Sara Rosenberg

New York, Aug. 15 - ATP Oil & Gas Corp. closed on a new $110 million senior credit facility that matures in August 2007.

The overall interest rate, including associated fees, of the new senior secured facility is projected to be 8.9%, according to a news release.

Security is substantially all of the company's Gulf of Mexico assets.

The company's existing senior credit facility with a $50 million borrowing base slated to mature in 2004 and secured by substantially the same assets, was retired in conjunction with this transaction.

Furthermore, the company used a portion of the availability under the new facility to retire the entire amount of its outstanding subordinated note, which would have matured in 2005 and carried an interest rate of approximately 16.5%.

"This lending facility enhances our financial flexibility and enables us to address projects in our inventory to generate production growth. It eliminates our high interest rate subordinated note, significantly reduces our overall cost of capital, and pushes our debt maturity out to 2007. Of significance, also, is that the new senior credit facility leaves unencumbered all of our North Sea oil and gas properties," said T. Paul Bulmahn, chairman and president, in the release.

ATP Oil & Gas is a Houston development and production company of natural gas and oil.

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