Battalion Oil Corporation Strengthens Liquidity Position With Strategic Refinancing
November 29 2021 - 6:00AM
Battalion Oil Corporation (NYSE American: BATL, “Battalion” or the
“Company”) today announced it has closed an agreement with a group
of lenders for a new first lien delayed draw term loan facility
(the “Term Loan”) for up to $235 million bearing interest of LIBOR
plus 7.00% on drawn amounts.
Initial borrowings of $200 million will allow
Battalion to repay all outstanding loans and obligations under the
Company’s previous senior revolving credit facility and add
significant cash to the balance sheet after fees and expenses. The
Company will have approximately $35 million of additional capacity
under the Term Loan which will be available for future development
of the Company’s Monument Draw asset.
Richard Little, the Company's CEO, commented,
“Coming off a strong quarter, we are pleased to announce a
strategic refinancing. This new capital not only allows for a
complete repayment of our previous credit facility, but also
provides ample liquidity to accelerate the development of our
Monument Draw asset. I would like to thank our previous bank group
for their support as we transition to this new facility.”
Mr. Little continued, “Since joining Battalion
in the summer of 2019, our team has methodically reduced costs,
improved flow assurance, and positioned the company to take
advantage of the unique strengths our assets have to offer. We have
completed a lot of the heavy lifting and have created an asset base
that can compete with some of the best wells in the basin. We look
forward to returning to growth through the drill bit while locking
in strong returns through an aggressive hedge program.”
Macquarie Group served as sole lead arranger for
the Term Loan, and is serving as a lender, letter of credit
provider, and a hedge counterparty for the Company.
Weil, Gotshal & Manges LLP served as legal
advisor to Battalion and Sidley Austin LLP served as legal advisor
to the lending group.
About Battalion
Battalion Oil Corporation is an independent energy company
engaged in the acquisition, production, exploration and development
of onshore oil and natural gas properties in the United States.
Forward Looking Statements
This release contains forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Statements that are not strictly historical statements
constitute forward-looking statements. Forward-looking statements
include, among others, statements about anticipated production,
liquidity, capital spending, drilling and completion plans, and
forward guidance. Forward-looking statements may often, but not
always, be identified by the use of such words such as "expects",
"believes", "intends", "anticipates", "plans", "estimates",
“projects”, "potential", "possible", or "probable" or statements
that certain actions, events or results "may", "will", "should", or
"could" be taken, occur or be achieved. Forward-looking statements
are based on current beliefs and expectations and involve certain
assumptions or estimates that involve various risks and
uncertainties that could cause actual results to differ materially
from those reflected in the statements. These risks include, but
are not limited to, those set forth in the Company's Annual Report
on Form 10-K for the fiscal year ended December 31, 2020, and other
filings submitted by the Company to the U.S. Securities and
Exchange Commission (“SEC”), copies of which may be obtained from
the SEC's website at www.sec.gov or through the Company's website
at www.battalionoil.com. Readers should not place undue reliance on
any such forward-looking statements, which are made only as of the
date hereof. The Company has no duty, and assumes no obligation, to
update forward-looking statements as a result of new information,
future events or changes in the Company's expectations.
Contact
Chris Lang Manager, Finance (832) 538-0551
Battalion Oil (AMEX:BATL)
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