Penn Virginia Corporation Announces New Credit Facility and Provides an Update on Financial Liquidity
Borrowing Base and Initial Commitment Amount of $300 Million
$32 Million Federal Income Tax Refund Received
Approximately $225 Million of Available Liquidity
Penn Virginia Corporation (NYSE: PVA) announced today that it has closed
on a new senior secured revolving credit facility (the 'New Credit
Facility?).
The New Credit Facility has a five-year maturity, a $300 ?million
commitment amount, an accordion feature to expand commitment amounts by
up to $300 ?million and an initial $300 ?million borrowing base, which is
$70 ?million higher than the borrowing base under its previous revolving
credit facility (the 'Previous Credit Facility?). Currently, PVA has
$77 ?million drawn under the New Credit Facility, approximately $2
million of letters of credit and approximately $4 ?million of cash on
hand following the recent receipt of a $32 ?million federal income tax
refund. As a result, PVA has cash plus availability under the New Credit
Facility of approximately $225 million.
The applicable interest rate margin under the New Credit Facility ranges
from LIBOR plus 1.50 percent to LIBOR plus 2.50 ?percent, depending on
the amount drawn at any given time on the New Credit Facility. This
range is unchanged from the Previous Credit Facility. The current
applicable interest rate margin under the New Credit Facility is LIBOR
plus 1.75 ?percent. The maximum leverage ratio covenant was amended in
the New Credit Facility to allow a total debt to EBITDAX ratio, as
defined in the New Credit Facility, of 4.50 times through
December ?31, ?2013, 4.25 times through June 30, 2014 and then 4.00 times
through maturity. The maximum leverage ratio under the Previous Credit
Facility was 4.50 ?times through June 30, 2013 and then 4.00 times
through maturity. The borrowing base under the New Credit Facility will
be re-determined based on a semi-annual review of PVA's total proved
crude oil, natural gas liquids and natural gas reserves starting in the
spring of 2013.
Wells Fargo Bank, N.A. served as the administrative agent, issuing bank
and co-lead arranger and RBC Capital Markets LLC served as co-lead
arranger.
Penn Virginia Corporation (NYSE: PVA) is an independent oil and gas
company engaged primarily in the development, exploration and production
of natural gas and oil in various domestic onshore regions including
Texas, the Mid-Continent and Mississippi.For more information,
please visit our website at www.pennvirginia.com.
Penn Virginia Corporation
James W. Dean, Vice President, Corporate
Development
Ph: (610) 687-7531 Fax: (610) 687-3688
E-Mail: invest@pennvirginia.com
