ATP Oil & Gas subsidiary gets up to $350 million seven-year term loan

By Angela McDaniels

Tacoma, Wash., Sept. 30 - ATP Oil & Gas Corp. said its newly formed subsidiary, ATP Titan LLC, entered into an up to $350 million seven-year term loan facility with CLG Energy Finance, LLC, an affiliate of Beal Bank Nevada.

The proceeds of the term loan at closing were $150 million. ATP Titan can make additional draw requests in the amounts of $100 million, $50 million and $50 million when production begins from the second, third and fourth wells, respectively, at ATP's deepwater Telemark Hub.

The term loan was issued at 95½ and bears 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 loan is not guaranteed by ATP.

All of but $10 million of the proceeds were distributed by ATP Titan to ATP, which plans 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 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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