Billings, MT-based Voyager Oil & Gas (AMEX: VOG) has entered into a new $150 million credit facility with Macquarie Bank Ltd. The facility will be used to retire existing debt and allow Voyager to accelerate development and production growth in the Williston Basin for the purpose of Bakken and Three Forks well development, production growth and acquisition in the Williston Basin.
The credit facility is set up as a two-tranche loan to be completely secured by the company’s assets. The first tranche (Tranche A) has an initial $15 million borrowing base with a $100 million face amount. The second tranche (Tranche B) may provide a maximum of $50 million for development/acquisition expenses.
Tranche A holds a current interest rate of 3.25% above LIBOR; Tranche B’s interest rate is 7.5% plus LIBOR.
Analysts at Global Hunter Securities say the deal “demonstrates the inherent value” of Voyager’s growing acreage position targeting the Bakken Shale, and expects the stock to “react positively” to the news.