Energy Corp. of America calls 9% notes, to repay revolver with sale proceeds

New York, May 19 - Energy Corp. of America said it will redeem its 9% senior subordinated notes and repay borrowings under its revolving credit facility with proceeds from the sale of a term royalty interest in oil and gas properties in West Virginia, Kentucky and Pennsylvania.

Any remaining proceeds will be used for general corporate purposes.

The $92.033 million of the 9% notes will be redeemed on June 22.

The royalty interest is being sold by Energy Corp.'s Eastern American Energy Corp. subsidiary to Black Stone Minerals Co., LP for $155 million.

The sale is instead of the previously planned initial public offering in the Appalachian Gas Royalty Trust. The S-1 registration statement for that transaction filed with the Securities and Exchange Commission will be withdrawn.

Energy Corp. is a privately held oil and gas exploration and production company based in Denver.

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