Heartland Bank Provides Lilis Energy Facility
Lilis Energy announced that it has secured a credit facility with Heartland Bank as administrative agent for up to $50 million.
The credit agreement provides for a three-year senior secured term loan in an initial aggregate principal amount of $3 million, which principal amount may be increased to a maximum principal amount of $50 million, subject to certain conditions, including lender approval of additional advances.
Funds borrowed under the agreement are designated to be used to purchase oil and gas assets, fund certain lender-approved development projects, fund a debt service reserve account, pay all costs and expenses arising in connection with the negotiation and execution of the credit agreement, and fund the company’s general working capital needs.
The credit facility has a maturity date of January 8, 2018, with all outstanding principal due at maturity, subject to a 3% prepayment premium on prepayments made prior to January 8, 2016.
“We believe that the current oil and gas market provides tremendous opportunities to pursue acquisitions of producing and reserve-rich assets at favorable valuations in the DJ Basin and in other attractive opportunities throughout North America. Our number one priority is to utilize this capital to increase production and drive reserve growth,” stated Avi Mirman, CEO of Lilis Energy. “I would like to thank the Heartland Bank team and especially Greg White, senior credit analyst, and Phil Thomas, chief lending officer, for their efforts in helping us put together this financing package that we believe will allow us to continue to execute on our business strategy.”
Denver-based Lilis Energy is an independent oil and gas exploration and production company that operates in the Denver-Julesburg (DJ) Basin.