HOUSTON, November 29 /CNW/ - Gastar Exploration Ltd. (AMEX: GST) (TSX:YGA)
today announced that its wholly owned subsidiary, Gastar Exploration USA, Inc.
("Gastar USA"), has completed the previously announced private placement of
$100 million aggregate principal amount of 12 3/4% senior secured notes due
2012 at an issue price of 99.50% (the "Notes") in a private placement to
qualified institutional buyers pursuant to Rule 144A of the Securities Act of
1933, as amended (the "Act"). Approximately $76.7 million of the $92.8 million
net proceeds from the offering of the Notes were used to repay existing
indebtedness, with the remaining net proceeds to be used for general corporate
purposes. The Notes are guaranteed by all domestic subsidiaries of Gastar USA
and its parent, Gastar Exploration Ltd.
Concurrently with the issuance of the Notes, Gastar USA also entered into
a bank revolving credit and letter of credit facility with Amegy Bank National
Association with an initial borrowing base of $19.375 million. The bank
facility is secured by a first priority lien on the primary oil and gas assets
of Gastar and certain other property and pledges of subsidiary stock. The
Notes are secured by a second lien on the primary oil and gas assets and
certain other property.
The Notes have not been registered under the Securities Act of 1933, as
amended (the "Act"), and unless so registered, may not be offered or sold in
the United States absent registration or an applicable exemption from the
registration requirements of the Act and applicable state laws.
This announcement does not constitute an offer to sell, or the
solicitation of offers to buy, any security and shall not constitute an offer,
solicitation or sale of any security in any jurisdiction in which such offer,
solicitation or sale would be unlawful.
The American Stock Exchange and the Toronto Stock Exchange have not
reviewed and do not accept responsibility for the adequacy or accuracy of this
For further information:
For further information: Gastar Exploration Ltd. Vice President and CFO
Michael Gerlich, 713-739-1800 firstname.lastname@example.org or Investor Relations
Counsel: DRG&E Lisa Elliott or Anne Pearson, 713-529-6600 email@example.com