DENVER, Nov. 23, 2010 /PRNewswire-FirstCall/ -- Delta
Petroleum Corporation (the "Company" or "Delta") (Nasdaq: DPTR), an
independent oil and gas exploration and development company,
announced today that it has received a commitment letter for a new
senior secured credit facility with Macquarie Bank Limited
("Macquarie").
The terms of the commitment letter provide for a $100 million credit facility, which contemplates
an initial commitment of up to $50
million comprised of a $30
million revolving line of credit (Tranche A) and a
$20 million advancing term loan
(Tranche B). The commitment letter contemplates that the
facility will bear interest of Libor plus 7% or Prime plus 6% for
Tranche A borrowings and Libor plus 9% or Prime plus 8% for Tranche
B borrowings, and be subject to a 2% closing fee on the initial
commitment amount. It is expected that the facility will
mature on January 31, 2012.
Once a credit agreement is signed and the new credit facility
is in place, borrowings will be made from this new facility to
repay the outstanding balance on the Company's existing credit
facility. The existing credit facility will then be
terminated.
Carl Lakey, President and CEO of
Delta Petroleum stated, "We are pleased to announce the receipt of
a commitment letter for a new credit facility from Macquarie.
We will promptly begin to work toward signing a credit
agreement and closing on the facility as soon as possible.
Macquarie brings a wide breadth of experience in the industry
and in the capital markets. We look forward to building a
mutually beneficial relationship with them as both a valued
financial partner and advisor in the future."
ABOUT DELTA PETROLEUM
Delta Petroleum Corporation is an oil and gas exploration and
development company based in Denver,
Colorado. The Company's core areas of operations are in the
Rocky Mountain region, where the majority of its operated
properties and long-term growth prospects are located. Its
common stock is listed on the NASDAQ Global Market System under the
symbol "DPTR."
FORWARD-LOOKING STATEMENTS
Forward-looking statements in this announcement are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Such forward-looking
statements include, without limitation, the Company's anticipated
entry into a new credit facility. Readers are
cautioned that all forward-looking statements are based on
management's present expectations, estimates and projections, but
involve risks and uncertainty, including without limitation,
uncertainties in the closing process under the definitive
agreements, the ability to obtain necessary third party consents,
as well as general market conditions, competition and pricing.
Please refer to the Company's report on Form 10-K for the
year ended December 31, 2009 and
subsequent reports on Forms 10-Q and 8-K as filed with the
Securities and Exchange Commission for additional information.
The Company is under no obligation (and expressly disclaims
any obligation) to update or alter its forward-looking statements,
whether as a result of new information, future events or
otherwise.
For further information contact the Company at (303) 293-9133 or
via email at investorrelations@deltapetro.com.
SOURCE Delta Petroleum Corporation