Brigham Exploration Closes Financings to Fund 2000 Drilling Program.Business Editors & Energy Writers AUSTIN Austin. 1 City (1990 pop. 21,907), seat of Mower co., SE Minn., on the Cedar River, near the Iowa line; inc. 1868. The commercial and industrial center of a rich farm region, it is noted as home to the Hormel meatpacking company, whose Spam Town museum , Texas--(BUSINESS WIRE)--Feb. 22, 2000 Brigham Exploration Company (Nasdaq:BEXP) today announced that it has entered into a series of financing agreements Financing Agreements In the context of project financing, the documents which provide the project financing and sponsor support for the project as defined in the project contracts. that provide funding for its planned 2000 capital expenditure program and working capital obligations. These transactions include (i) a restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of its senior credit facility to provide from $14 million to $19 million in borrowing availability, (ii) amendments to the terms of its senior subordinated notes to provide for the restructured credit facility and additional financial flexibility, and (iii) the issuance of $4.5 million of common stock and warrants to purchase common stock in a private placement. Through these related financing transactions, Brigham has secured a total of $18.5 million to $23.5 million in capital availability to fund its planned $20 million drilling program in 2000. Brigham has entered into an amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. senior credit facility with its existing lenders, Bank of Montreal “BMO” redirects here. For the mathematics competition, see British Mathematical Olympiad. Bank of Montreal/Banque de Montréal (TSX: BMO, NYSE: BMO) is Canada's fourth largest bank[1], and is classified as a Domestic Chartered Bank (Schedule I). and Societe Generale, and a new lender, Shell Capital Inc. This amended facility provides the Company with $70 million in borrowing availability for a three-year term, an increase from the $56 million in availability under the existing facility. If Brigham exceeds certain asset value and interest coverage tests in the second or third quarters of 2000, the total borrowing availability under this credit facility will increase to $75 million. Borrowings under the senior credit facility in excess of $45 million are convertible into shares of Brigham common stock in the following amounts: (i) the first $10 million of borrowings is convertible at $3.90 per share, (ii) the second $10 million is convertible at $6.00 per share and (iii) the final $10 million is convertible at $8.00 per share. All borrowings under the senior credit facility bear interest at annual rates of LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). plus 3.00%, or approximately 8.875% based on current LIBOR rates. In its amendments to the terms of its outstanding $45.5 million of senior subordinated notes due 2003 (the "Notes"), the Company has been granted an extension of its right to pay interest through the issuance of additional Notes in lieu of Instead of; in place of; in substitution of. It does not mean in addition to. cash (or "in-kind") through the third quarter of 2000, and potentially through the fourth quarter of 2000 if certain conditions are met. In exchange for the amendments to the Notes, the Company has agreed to grant to the holders of the Notes a term overriding royalty interest overriding royalty interest A third-party interest in royalty income derived from oil and gas rights. that provides for the limited right to receive 4%, or 3% if certain conditions are met, of the Company's net production revenue to reduce any Notes that have been or will be issued as interest paid in-kind. Brigham has also agreed to issue 2,195,122 shares of common stock and 731,707 warrants to purchase common stock for total consideration of $4.5 million in a private placement to a group of institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. led by affiliates of two members of the Company's board of directors. The equity sale consists of units that include one share of common stock priced at $2.05 per share and one-third of a warrant to purchase Brigham common stock at an exercise price of $2.5625 per share with a three-year term. Pricing of this private equity placement was based on the average market price of Brigham common stock during a 20 trading day In Business, the trading day is the time span that a particular stock exchange is open. For example, the New York Stock Exchange is, as of 2006, open from 09:30AM to 4:00PM. Trading days never take place on weekends. period prior to issuance. Curtis Harrell, the Company's Chief Financial Officer, stated, "We are pleased to announce the closing of this significant series of coordinated financing transactions for our Company. Despite the recent improvements in market prices for crude oil and natural gas, capital available for investment in exploration and production firms remains a challenge for our sector. "We view the investments by Shell Capital, a sophisticated, high-quality energy investor, and members of our board of directors to be indicative of the substantial value that exists in our undrilled prospect inventory. Through this combination of debt and equity financings Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. , we have successfully raised the capital necessary to fund our planned drilling projects in 2000. "We have positioned Brigham to continue to create value through the execution of our balanced exploration and development drilling program which should yield further opportunities to improve our capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. and capital resources during 2000." About Brigham Exploration Brigham Exploration Company (www.bexp3d.com) is an independent exploration and production company that applies 3-D seismic imaging and other advanced technologies to systematically explore and develop onshore on·shore adj. 1. Moving or directed toward the shore: an onshore wind. 2. Located on the shore: an onshore beacon; an onshore patrol. adv. domestic natural gas and oil provinces. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Disclosure Except for the historical information contained herein, the matters discussed in this news release are forward looking statements that are based upon current expectations. Important factors that could cause actual results to differ materially from those in the forward looking statements include risks inherent in exploratory drilling activities, the timing and extent of changes in commodity prices, unforeseen engineering and mechanical or technological difficulties in drilling wells, availability of drilling rigs, land issues, federal and state regulatory developments and other risks more fully described in the Company's filings with the Securities and Exchange Commission. |
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