DENVER, Aug. 19, 2013 /PRNewswire/ -- American
Eagle Energy Corporation (OTCQX: AMZG) ("American Eagle" or the
"Company") announces that it has closed on a Senior Credit Facility
("Credit Facility") with Morgan Stanley Capital Group Inc. ("Morgan
Stanley"). The Credit Facility is a senior secured reserve based
credit facility with a maximum potential commitment of up to
$200 million. Initially, $68 million is committed and available for
funding. An additional $40 million is
earmarked for the purpose of purchasing additional interests in the
Spyglass Project area from a joint venture partner ("Spyglass
Transaction"). The availability of the $40
million is contingent upon the closing of the Spyglass
Transaction and the Company meeting certain financial covenants and
conditions precedent. An additional $92
million is initially uncommitted.
The Company plans to draw the full $68
million available to retire the Macquarie Bank Limited swap
facility, which it entered into at the end of last year, for
approximately $18 million and to pay
fees and expenses associated with the Credit Facility. American
Eagle will use the remaining proceeds for working capital, to fund
the Company's well development program, to acquire additional
acreage, and for other general corporate purposes.
The Credit Facility has a five-year term and carries a variable
interest rate ranging from approximately 5.5% to 10.5%. The
variable interest rate is based primarily on the ratio of the
Company's proved developed reserves to its debt for a given period.
As of the closing, the applicable variable interest rate on the
Credit Facility is 10.5%. The Credit Facility is collateralized by,
among other things, the Company's oil and gas properties and future
oil and gas sales derived from such properties, and contains
various financial and operational covenants that are typical of
such borrowing agreements. The Company did not provide royalty
consideration in connection with the Credit Facility.
In connection with the Credit Facility, KLR Group acted as
advisors to American Eagle.
Comments from Morgan Stanley and Management
David Lazarus, Executive
Director, Morgan Stanley Capital Group Inc., stated, "We are
excited to provide American Eagle Energy with a new credit facility
that meets the company's current needs while also providing
future flexibility. We look forward to working with
management as it continues to grow American Eagle's
assets."
Brad Colby, President and CEO of
American Eagle, said, "We are thrilled to have Morgan Stanley as
our lender. As we grow our proved reserves, the credit facility
allows us the opportunity to increase our availability and/or to
decrease our interest rate. We believe the structure of the new
credit facility is a great fit for American Eagle as we continue to
develop our Spyglass Project area in northwestern Divide County, North Dakota."
ABOUT AMERICAN EAGLE ENERGY CORPORATION
American Eagle Energy Corporation is an independent exploration
and production operator that is focused on acquiring acreage and
developing wells in the Williston
Basin of North Dakota and
Montana, targeting the Bakken and
Three Forks shale oil formations.
The Company is based in Denver,
CO. More information about American Eagle Energy can be
found at www.americaneagleenergy.com or by contacting investor
relations at 303-798-5235 or ir@amzgcorp.com. Company filings with
the Securities and Exchange Commission can be obtained free of
charge at the SEC's internet site at www.sec.gov.
SAFE HARBOR
This press release may contain forward-looking statements
regarding future events and the Company's 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 press release regarding the
Company'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 report,
forward-looking statements are generally accompanied by terms or
phrases such as "estimate," "project," "predict," "believe,"
"expect," "anticipate," "target," "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 the
Company's control) that could cause actual results to differ
materially from those set forth in the forward-looking statements,
including the following: general economic or industry
conditions, nationally and/or in the communities in which the
Company conducts business, changes in the interest rate
environment, legislation or regulatory requirements, conditions of
the securities markets, our ability to raise capital, changes in
accounting principles, policies, or guidelines, financial or
political instability, acts of war or terrorism, other economic,
competitive, governmental, regulatory and technical factors
affecting the Company's operations, products, services, and
prices.
The Company 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 the Company's control. The Company does not
assume any obligations to update any of these forward-looking
statements.
INVESTOR RELATIONS CONTACT:
Marty Beskow
Vice President of Capital Markets and Strategy
American Eagle Energy Corporation
303-798-5235
ir@amzgcorp.com
www.americaneagleenergy.com
Brad Holmes
EnergyIR
713-654-4009
B_holmes@att.net
SOURCE American Eagle Energy Corporation
