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ATP Oil subsidiary gets another $100 million under term loan facility
By Angela McDaniels
Tacoma, Wash., Dec. 6 - ATP Oil & Gas Corp. subsidiary ATP Titan LLC received $100 million under a seven-year term loan facility with CLG Energy Finance, LLC, an affiliate of Beal Bank Nevada, according to a company news release.
This is the second installment under the facility, which can total up to $350 million.
ATP Titan drew $150 million at closing in September. The company was able to make the second draw when production began from the second well at ATP's deepwater Telemark Hub.
The company can make two additional draw requests in the amount of $50 million each when production begins from the third and fourth wells.
The term loans are issued at 95½ and bear interest at Libor plus 800 basis points with a Libor floor of 0.75%, according to an 8-K filing with the Securities and Exchange Commission.
The company must make quarterly principal payments of 2% of the outstanding balance during the first year, 2.25% during the second year and 2.5% during each subsequent year.
The term loans are not guaranteed by ATP.
All of but $10 million of the proceeds from the initial draw were distributed by ATP Titan to ATP, which planned to use the funds for the continued development of its properties in the Gulf of Mexico and North Sea and for other corporate purposes.
ATP is a Houston-based developer and producer of oil and natural gas. It contributed its ownership in its ATP Titan platform - the floating production facility that began operations in March 2010 at the first producing well at ATP's deepwater Telemark Hub - to ATP Titan. ATP remains the operator of the platform and continues to operate and hold a 100% working interest in its Telemark Hub oil and gas reserves.
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