TransAtlantic Petroleum gets $120 million five-year credit facility

By Sara Rosenberg

New York, May 19 - TransAtlantic Petroleum Ltd. closed on a $120 million amended and restated five-year senior secured credit facility, according to an 8-K filed with the Securities and Exchange Commission on Thursday.

Standard Bank plc and BNP Paribas acted as the lead arrangers and bookrunners on the deal that was completed on May 18 and have each committed $60 million towards the facility.

On the last day of each fiscal quarter commencing Sept. 30, 2012 and at the maturity date, the lenders' commitments are subject to reduction by 6.25%.

Pricing on the facility is Libor plus 550 basis points.

The borrowing base is $75 million.

Financial covenants include a ratio of combined current assets to combined current liabilities of not less than 1.10 to 1.00, a ratio of EBITDAX to aggregate amounts payable under the facility of not less than 1.50 to 1.00, a ratio of EBITDAX to interest expense of not less than 4.00 to 1.00 and a ratio of total debt to EBITDAX of less than 2.50 to 1.00.

Proceeds will be used to repay $30 million of short-term secured credit facility debt, to finance a portion of the development of the company's oil and gas properties in Turkey and for working capital purposes in Turkey.

In addition, the company amended its credit facility with Dalea, providing that outstanding amounts be repaid by Dec. 31, instead of by June 28, and increasing pricing to Libor plus 500 bps from Libor plus 250 bps.

TransAtlantic Petroleum is a Dallas-based energy company engaged in the acquisition, development, exploration and production of crude oil and natural gas.

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