ATP Oil & Gas amends loan, modifying pricing and raising pricing

By Sara Rosenberg

New York, Nov. 3 - ATP Oil & Gas Corp. amended its credit facility, relaxing covenants from Dec. 31, 2009 through Dec. 31, 2010 and increasing pricing during that timeframe, according to a news release.

Specifically, the net debt to EBITDAX ratio was changed to 4.0 times from 3.0 times, the EBITDAX to interest ratio was changed to 2.0 times from 2.5 times and the current ratio was changed to 0.8 timed from 1.0 times.

During the revised covenant period, pricing on the company's term loans will increase by 275 basis points, falling to 100 bps for the period beginning in January 2011.

In addition, lenders were paid a 50 bps fee.

Credit Suisse acted as lead arranger for the amendment.

"Since 2008, the world has experienced a severe recession. Despite these conditions, ATP has delivered increased financial strength and decreased our debt. Since December 2008 ATP's tranche B-2 term loan has been reduced from $600 million to $161 million," said T. Paul Bulmahn, chairman and chief executive officer, in the release.

"This performance has been recognized by our lenders and is one of the reasons that ATP was able to obtain greater flexibility with our covenants in order to address our goals of first production at Telemark, reduction of the tranche B-2 and added financial strength," Bulmahn added.

ATP Oil & Gas is a Houston-based offshore oil and gas development and production company.

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