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Petroleum industry

Vintage Petroleum Expands Bank Facility with Bank of Montreal

Strategic Insights

— 1 min read

Vintage Petroleum Inc. has announced the expansion and restructuring of its bank facility with Bank of Montreal, securing a new facility of $575 million. The deal includes a term loan with a borrowing base of $550 million and an $89 million letter-of-credit facility, with NationsBank serving as syndication agent and Societe Generale as documentation agent. The company's previous $500 million revolver with BofM was priced at a spread of Libor plus 55 basis points to Libor plus 100 basis points with a commitment fee of 25 basis points to 37.5 basis points.

Key Takeaways:

  • Vintage Petroleum has secured a new bank facility with Bank of Montreal, comprising a $575 million term loan and a $89 million letter-of-credit facility.
  • The term loan has a borrowing base of $550 million, with NationsBank serving as syndication agent and Societe Generale as documentation agent.
  • ABN AMRO and Chase Manhattan are co-agents on the deal, while allocations on the new facility were made as follows: BofM at $50 million; Nations and Soc Gen at $47 million each; and Chase, BankBoston, First Chicago NBD, ABN and Banque Paribas at $44 million each.
  • The company's previous $500 million revolver with BofM was priced at a spread of Libor plus 55 basis points to Libor plus 100 basis points with a commitment fee of 25 basis points to 37.5 basis points.
  • Vintage Petroleum is an independent energy company engaged in the acquisition, exploitation, exploration, and development of oil and gas properties and the marketing of natural gas and crude oil.
  • The company is based in Tulsa, Okla.

Statistics:

  • $575 million: the total facility secured by Vintage Petroleum Inc. with Bank of Montreal
  • $550 million: the borrowing base for the term loan
  • $89 million: the letter-of-credit facility
  • 55 basis points to 100 basis points: the spread on the previous $500 million revolver with BofM
  • 25 basis points to 37.5 basis points: the commitment fee on the previous $500 million revolver with BofM

Sources:

  • Jennifer C. Strauss, Vintage Petroleum Inc. press release.

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