Printer Friendly

HAMPTON RESOURCES CORPORATION ANNOUNCES $25 MILLION CREDIT FACILITY

 HOUSTON, Oct. 25 /PRNewswire/ -- Frank A. Lodzinski, president and chief operating officer of Hampton Resources Corporation (NASDAQ: HPTR) today announced the completion and signing of a $25 million dollar credit facility with First Union National Bank of North Carolina. The facility was arranged by the First Union Energy Group located in Houston. Interest rates for the new credit facility are based upon First Union's prime rate, the Euro-Dollar rate or a combination thereof, as determined by the company. Hampton initially borrowed $8.0 million under this new credit facility to refinance existing higher cost debt, fund certain developmental expenditures and for general corporate purposes.
 In connection with this transaction Hampton retired and terminated its previous mezzanine debt facility which provided up to $20 million of 10 percent senior notes and $1.6 million in 10 percent subordinated notes. The company also repurchased from the holders of the subordinated debt their option to acquire either (1) a 20 percent equity interest in the company or (2) a 25 percent net profits interest in oil and gas properties acquired by the company with the senior or subordinated notes.
 Lodzinski stated, "This new relationship with First Union considerably reduces the cost of capital related to prior acquisitions and further provides Hampton the opportunity to continue its acquisition program for natural gas and oil properties, while pursuing an active exploration and development program to extend our reserve base and replace current production."
 Hampton Resources Corporation is an independent natural gas and oil company with the long-term goal of increasing its reserve base through the acquisition, exploitation and development of proved reserves and through exploration. The company is headquartered in Houston, Texas.
 -0- 10/25/93
 /CONTACT: Jeffrey S. Rawson, chairman, or Frank A. Lodzinski, president and COO of Hampton Resources Corporation, 713-752-2950/
 (HPTR)


CO: Hampton Resources Corporation ST: Texas IN: OIL SU: FNC

LD -- NY117 -- 6581 10/25/93 17:42 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 25, 1993
Words:318
Previous Article:ABITIBI-PRICE TURNS QUARTERLY OPERATING PROFIT
Next Article:VIDEO LOTTERY TECHNOLOGIES REPORTS THIRD QUARTER EARNINGS PER SHARE OF $0.27
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters