Warren gets $250 million bridge loan and revolver upsizing commitments

By Sara Rosenberg

New York, July 7 – Warren Resources Inc. has received a commitment for a $250 million senior unsecured bridge loan to help fund its acquisition of essentially all of the Marcellus assets of Citrus Energy Corp. and two additional working interest owners, according to an 8-K filed with the Securities and Exchange Commission on Monday.

Also, the company got a commitment to increase its existing revolving credit facility to $750 million from $300 million and lift the borrowing base to $225 million from $175 million.

BMO Capital Markets is the lead bank on the financing.

Other funds for the $352.5 million acquisition will come from the issuance of $40 million in common stock priced at $6.00 per share.

Pro forma debt to EBITDA is 3 times.

Closing is expected in early August, although the transaction has an effective date as of July 1.

The purchase is subject to customary closing conditions and adjustments.

Warren is a New York-based energy company.

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