Berry Petroleum establishes a $150 million credit facility.TAFT, Calif.--(BUSINESS WIRE)--Dec. 4, 1996--Berry Petroleum Co. (NYSE NYSE See: New York Stock Exchange :BRY) Wednesday announced that it has entered into a three-year unsecured revolving line of credit Revolving line of credit A bank line of credit on which the customer pays a commitment fee and can take and repay funds at will. Normally a revolving LOC involves a firm commitment from the bank for a period of several years. in the amount of $150 million with NationsBank of Texas. The initial borrowing base will be $50 million, which can be redetermined periodically based on the needs of the company, agreement with the bank and approval of the Berry board of directors. Initial borrowings under the agreement will bear interest at LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). plus 60 basis points, which at current market conditions would approximate 6-1/4 percent annually. Ralph Goehring, chief financial officer, stated: ``We are excited to enter into a credit facility with a strong energy lender like NationsBank which can assist Berry in our future financing needs. ``While Berry has not relied on debt in the past for its operations or growth, the board and management recognize that Berry is in a unique position to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. various opportunities as our industry continues to restructure. ``We are committed to the prudent use of leverage for continued growth purposes to improve our cash flow. This facility will allow Berry to pursue quality acquisitions, which are at the heart of Berry's growth plans. ``Berry's exceptional financial strength has allowed the company to enter into this favorable agreement. It should be noted that Berry is not constrained con·strain tr.v. con·strained, con·strain·ing, con·strains 1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force. 2. in continuing its current dividend policy or other operational and financial objectives.'' The company recently completed an acquisition of 7 million barrels of proved reserves proved reserves The quantity of minerals expected to be recoverable under current economic and operating conditions. The amount of proved reserves is important in valuing the stock of a company with significant holdings in natural resources. including an 18-megawatt cogeneration facility on the property for a combined purchase price of $25.5 million, financed with existing working capital. The company currently has approximately $20 million in working capital with no long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. . Berry Petroleum is a publicly traded independent oil and gas production and exploration company with its headquarters in Taft. CONTACT: Berry Petroleum Co., Taft Jerry V. Hoffman or Ralph J. Goehring 805/769-8811 805/769-8960 (fax) www.bry.com (Internet) ir@bry.com (e-mail) |
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