By Lisa Kerner
Charlotte, N.C., Sept. 23 - Voyager Oil & Gas, Inc. issued $15 million principal amount of 12% senior secured promissory notes that mature on Sept. 17, 2011, according to a form 8-K filed with the Securities and Exchange Commission.
The notes may be extended an additional year at the end of the initial term at Voyager's option.
Interest is payable monthly beginning on Oct. 1.
Voyager may prepay the notes at 102% of par during the initial 12 months and may prepay the notes at par at any time during the extended term.
Investors have a first-priority security interest on all of Voyager's assets, on a pari passu basis with each other.
Proceeds will be used primarily to fund developmental drilling on Voyager's acreage positions targeting the Denver-Julesberg Basin Niobrara formation through its joint venture with Slawson Exploration and the Williston Basin Bakken/Three Forks, according to a company news release.
"With this capital and our forecasted cash flow from producing wells, we expect to be able to fund our Niobrara and Bakken development plans at a cost of capital significantly below the projected returns on the wells and cheaper than issuing equity at our current share price," Voyager chief executive officer J.R. Reger said in the release.
Voyager is an oil and gas exploration and production company based in Billings, Mont.
| Issuer: | Voyager Oil & Gas, Inc.
|
| Issue: | Senior secured promissory notes
|
| Amount: | $15 million
|
| Maturity: | Sept. 17, 2011
|
| Coupon: | 12%, payable monthly
|
| Price: | Par
|
| Call option: | At 102 during first year, then at par if maturity is extended
|
| Settlement date: | Sept. 22
|
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