This excerpt taken from the VQ 8-K filed Mar 5, 2009.
In connection with the sale of the Hastings Complex, Venoco proactively requested a re-determination of the borrowing base under its revolving credit facility. As a result, the borrowing base under the facility was reduced to $125 million and paid down to a zero balance with proceeds from the sale. Subsequently, $5.6 million was drawn on the facility solely to maintain a balance of variable rate debt equivalent to the notional amount of the companys $500 million interest rate
swap. Except for acquisitions, the company anticipates having only a small percentage of the revolver drawn at year-end 2009.
Venoco has reduced its debt position from $800 million on December 31, 2008 to a current level of $665 million. The companys remaining debt consists of a $494 million Second Lien Term Loan facility (due September 2011), $150 million of 8¾% bonds (due December 2011), and $15 million in deferred derivative premiums. Debt levels are offset by cash of $37 million, for net debt of $628 million. The Term Loan has no maintenance covenants and provides a mechanism whereby the maturity date will be extended to May 2014, if the companys bonds are refinanced by September 2011.
We have been very deliberate in managing the positive impact of the Hastings sale on our financial position. As a result of our lower net debt position, we have no looming maturities and we benefit from approximately $150 million of liquidity, said Tim Ficker, Venocos CFO.