Roan Resources, Inc. Announces Commitments for a $100 Million Term Loan Facility & Reaffirmation of the $750 Million Borrowin...
June 19 2019 - 4:30PM
Business Wire
Roan Resources, Inc. (NYSE: ROAN) (“Roan” or the “Company”)
today announced it has received commitments for a $100 million term
loan facility from funds affiliated with certain significant
shareholders of the Company that are represented on the board of
directors. Borrowings under the term loan facility are expected to
bear interest at a rate equal to three-month LIBOR plus 7.50%. In
exchange for the commitments, the Company has agreed to issue 1.0%
of the outstanding shares of Class A common stock of the Company to
the lending parties no later than June 26, 2019. The term loan
facility is expected to close before the end of the month.
Separately, the Company completed its June borrowing base
redetermination for its revolving credit facility. The Company’s
bank group unanimously reaffirmed the current borrowing base of
$750 million.
Pro forma for the term loan facility as of June 30th, the
Company has approximately $150 million of available liquidity,
which is more than ample to fund Roan’s ongoing capital
program.
“We are very pleased to announce these two events today,” said
Joseph A. Mills, Roan’s Executive Chairman of the Board. “The $100
million term loan facility, which was struck at favorable terms for
the Company, and the reaffirmation of our borrowing base at $750
million enhances our current liquidity and demonstrates the
confidence these two groups have in the asset quality and strategic
direction of Roan. We now have ample liquidity to fund our ongoing
capital program and remain focused on growing production 20-25%
this year while also generating free cash flow by the fourth
quarter. The Company also continues to actively evaluate strategic
alternatives with Jefferies and Citigroup.”
Additional details regarding the financing described above and
related matters can be found in the Form 8-K filed by the Company
in conjunction with this press release.
About Roan Resources
Roan is an independent oil and natural gas company headquartered
in Oklahoma City, OK focused on the development, exploration and
acquisition of unconventional oil and natural gas reserves in the
Merge, SCOOP and STACK plays of the Anadarko Basin in Oklahoma. For
more information, please visit www.RoanResources.com, where we
routinely post announcements, updates, events, investor
information, presentations and recent news releases.
Cautionary Statements
This press release includes
"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. All statements, other than statements of
historical fact, are forward-looking statements which contain our
current expectations about future results. These forward-looking
statements are based on certain assumptions and expectations made
by the Company, which reflect management’s experience, estimates
and perception of historical trends, current conditions and
anticipated future developments. Such statements are subject to a
number of assumptions, risks and uncertainties, many of which are
beyond the control of the Company, which may cause actual results
to differ materially from those implied or anticipated in the
forward-looking statements. When considering these forward-looking
statements, you should keep in mind the risk factors and other
cautionary statements found in the Company’s filings with the
Securities and Exchange Commission, including its Annual Report on
Form 10-K, and any subsequently filed quarterly reports on Form
10-Q or current reports on Form 8-K
We caution you that these forward-looking statements are subject
to all of the risks and uncertainties, most of which are difficult
to predict and many of which are beyond our control, or incidental
to the development, production, gathering and sale of oil, natural
gas and NGLs. These risks include, but are not limited to,
commodity price volatility, inflation, lack of availability of
drilling and production equipment and services, environmental
risks, drilling and other operating risks, regulatory changes, the
uncertainty inherent in estimating reserves and in projecting
future rates of production, cash flow and access to capital, the
timing of development expenditures and the other risks.
Should one or more of the risks or uncertainties described
occur, or should underlying assumptions prove incorrect, our actual
results and plans could differ materially from those expressed in
any forward-looking statements.
All forward-looking statements, expressed or implied, included
in this release are expressly qualified in their entirety by this
cautionary statement. This cautionary statement should also be
considered in connection with any subsequent written or oral
forward-looking statements that we or persons acting on our behalf
may issue.
Except as otherwise required by applicable law, we disclaim any
duty to update any forward-looking statements, all of which are
expressly qualified by the statements in this section, to reflect
events or circumstances after the date of this release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190619005786/en/
Alyson Gilbert Investor Relations Manager 405-896-3767
IR@RoanResources.com
Roan Resources (NYSE:ROAN)
Historical Stock Chart
From Mar 2024 to Apr 2024
Roan Resources (NYSE:ROAN)
Historical Stock Chart
From Apr 2023 to Apr 2024