Cano Petroleum gets $25 million subordinated term loan

By Sara Rosenberg

New York, March 19 - Cano Petroleum Inc. closed on a new $25 million three-year subordinated term loan, with two one-year extension options, according to a news release.

UnionBanCal Equities Inc. provided the loan.

Pricing on the loan is Libor plus 575 basis points if the debt coverage ratio is less than or equal to 4:00 to 1:00, otherwise pricing is Libor plus 600 bps.

Security is a second-lien interest in the same assets backing the company's senior secured credit facility.

Covenants include EBITDA coverage to debt and interest as well as minimum asset coverage.

Cano will immediately draw $15 million under the term loan, which will be used to pay down funded debt under its senior secured credit facility. After the payment, the senior borrowing will be $34.5 million, which is 58% of the $60 million borrowing base.

The loan will also be used to provide funding to maintain the company's capital programs.

Cano is a Fort Worth, Texas-based energy producer.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.