Northern Oil and Gas, Inc. Enters into a New Five Year $750 Million Senior Secured Credit Facility
Northern Oil and Gas, Inc. (NYSE American: NOG) today announced that it
has closed an agreement with Royal Bank of Canada, as administrative
agent, and a syndicate of lenders under a new $750 million first lien
revolving credit facility (the “new credit facility”). RBC Capital
Markets, ABN AMRO, Capital One, Citizens Bank and Wells Fargo Securities
are the joint lead arrangers and joint book runners. The new credit
facility matures in October 2023.
The new credit facility has an initial borrowing base of $425 million,
with the next redetermination scheduled for April 1, 2019. Northern has
drawn $50 million of borrowings at closing. Northern applied a portion
of the initial proceeds, together with the net proceeds of its
previously announced offering of senior secured second lien notes,
towards the repayment and retirement of its term loan credit facility
led by TPG Sixth Street Partners.
MANAGEMENT COMMENT
“The closing of our new credit facility is a huge leap forward for the
Company’s financial flexibility and overall cost of capital,” commented
Northern’s Chief Financial Officer, Nick O’Grady. “We would like to
thank TPG Sixth Street Partners for their invaluable commitment over the
past year, which has been instrumental to the enormous strides the
Company has made. With their help, Northern has executed on over a half
billion dollars in acquisitions, vastly improved our credit metrics and
dramatically improved our share price.”
ABOUT NORTHERN OIL AND GAS
Northern Oil and Gas, Inc. is an exploration and production company with
a core area of focus in the Williston Basin Bakken and Three Forks play
in North Dakota and Montana.
More information about Northern Oil and Gas, Inc. can be found at www.NorthernOil.com.
SAFE HARBOR
This press release contains forward-looking statements regarding future
events and future results that are subject to the safe harbors created
under the Securities Act of 1933 (the “Securities Act”) and the
Securities Exchange Act of 1934 (the “Exchange Act”). All statements
other than statements of historical facts included in this release
regarding Northern’s financial position, business strategy, plans and
objectives of management for future operations, industry conditions, and
indebtedness covenant compliance are forward-looking statements. When
used in this release, forward-looking statements are generally
accompanied by terms or phrases such as “estimate,” “project,”
“predict,” “believe,” “expect,” “continue,” “anticipate,” “target,”
“could,” “plan,” “intend,” “seek,” “goal,” “will,” “should,” “may” or
other words and similar expressions that convey the uncertainty of
future events or outcomes. Items contemplating or making assumptions
about actual or potential future sales, market size, collaborations, and
trends or operating results also constitute such forward-looking
statements.
Forward-looking statements involve inherent risks and uncertainties, and
important factors (many of which are beyond Northern’s control) that
could cause actual results to differ materially from those set forth in
the forward-looking statements, including the following: changes in
crude oil and natural gas prices, the pace of drilling and completions
activity on Northern’s properties, Northern’s ability to acquire
additional development opportunities, changes in Northern’s reserves
estimates or the value thereof, general economic or industry conditions,
nationally and/or in the communities in which Northern conducts
business, changes in the interest rate environment, legislation or
regulatory requirements, conditions of the securities markets,
Northern’s ability to raise or access capital, changes in accounting
principles, policies or guidelines, financial or political instability,
acts of war or terrorism, and other economic, competitive, governmental,
regulatory and technical factors affecting Northern’s operations,
products, services and prices.
Northern has based these forward-looking statements on its current
expectations and assumptions about future events. While management
considers these expectations and assumptions to be reasonable, they are
inherently subject to significant business, economic, competitive,
regulatory and other risks, contingencies and uncertainties, most of
which are difficult to predict and many of which are beyond Northern’s
control. Northern does not undertake any duty to update or revise any
forward-looking statements, except as may be required by the federal
securities laws.
Source: Northern Oil and Gas, Inc.
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