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News Breaks | | | | September 7, 2012 | | 07:05 EDT |  | VQ | Venoco announces updated financing discussions
Venoco announced that Denver Parent Corp, or DPC, an affiliate of Timothy Marquez, Venoco's Executive Chairman, has prepared a presentation with updated details about its financing of the merger contemplated by the merger agreement among Venoco, Mr. Marquez, DPC and another affiliate of Mr. Marquez. DPC has advised Venoco that as a result of strong demand for the second lien term loan component of its financing, DPC expects the size of that facility to be increased from $175M to $225M. Consequently, DPC expects the financing package to include borrowings of $105M under Venoco's existing revolving credit facility, a $225M second lien term loan at Venoco, and capital raises by DPC in the amount of $230M, including a volumetric production payment on assets to be sold to DPC by Venoco for $210M. DPC intends that Venoco will use the cash proceeds from the asset sale to repay borrowings under the existing revolving credit facility and to make an offer to repurchase a portion of the outstanding Venoco Senior Notes at par. Additionally, DPC expects that Venoco will enter into a new first lien revolving credit facility with an initial borrowing base of $125M and make a $31M initial draw on that facility. | |
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