PostRock Finalizes New Credit Facility
OKLAHOMA CITY, Dec. 20, 2012 (GLOBE NEWSWIRE) -- PostRock Energy Corporation
("PostRock" or the "Company") (Nasdaq:PSTR) today announced that it had
secured a new four-year revolving credit facility (the "Facility"). Citibank
acted as Agent, Cadence Bank, Compass Bank and OneWest Bank as Co-Agents and
Texas Capital Bank as a participant.The Facility's initial borrowing base was
set at $90 million, of which $61.3 million was outstanding at closing, net of
cash on hand.The Facility was structured as an amendment to the existing
facility to minimize costs.In the future, if the value of the Company's oil
and gas properties justifies it, the borrowing base under the Facility could
be increased up to $200 million.
Interest on the Facility will be based on LIBOR plus 2.50% to 3.25%, depending
on outstandings. The borrowing base will be redetermined semi-annually in
April and October based on the banks' assessment of PostRock's proved oil and
gas reserves. The first borrowing base redetermination will take place in
April of 2013.
The Company also completed the closing of the previously announced $13 million
investment by White Deer Energy L.P.
Terry W. Carter, PostRock's President and Chief Executive Officer, said, "We
are extremely pleased with the refinancing. It is a testament to the
substantial progress made over the last few years and the growth opportunities
we believe lie ahead. For the first time in PostRock's recent history, we have
a single fully conforming debt facility and ample liquidity.This reflects a
better than 70% reduction in debt in the last 2 ½ years.The successful
refinancing could not have been accomplished without the confidence and
support of our new lenders.Just as importantly, the willingness of our former
bank group to work with us over the past four years could not have been more
appreciated. It was a challenging period and the leadership and support of our
agent, Royal Bank of Canada, along with all of the other participant banks was
nothing short of exceptional."
PostRock Energy Corporation is engaged in the acquisition, exploration,
development, production and transportation of oil and natural gas, primarily
in the Cherokee Basin of Kansas and Oklahoma. The Company owns and operates
over 3,000 wells and nearly 2,200 miles of gas gathering lines in the Basin.
It also owns and operates oil producing properties in central Oklahoma and oil
and gas producing properties in the Appalachian Basin.
The PostRock Energy Corp. logo is available at
Opinions, forecasts, projections and statements that are not historical facts
are forward-looking statements that involve risks and uncertainties. Such
statements in this announcement are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. Although
the Company believes that expectations reflected in these statements are
reasonable, it can give no assurance they will prove correct. Actual results
may differ materially due to factors which may not be foreseen by PostRock.
These risks and others are detailed in the Company's filings with the
Securities and Exchange Commission, including risk factors listed in the
Annual Report on Form 10-K and other SEC filings. These filings may be found
at www.pstr.com or www.sec.gov. In making forward-looking statements, the
Company undertakes no obligation to update these statements.
CONTACT: Company Contact:
Director, Finance & Investor Relations
PostRock Energy Corporation
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