ATPG: Raising capital
ATP Oil & Gas has been on a tear recently. Management executed beautifully on the Telemark project. And now we have this:
ATP Oil & Gas Corporation today announced that it intends to offer, subject to market conditions, $1,500 million aggregate principal amount of senior second lien notes due 2015 in a private offering. ATP intends to use the net proceeds of this offering to repay its existing senior secured term loans in full, to pay associated fees and expenses and for general corporate purposes. Concurrently with the consummation of this offering, ATP intends to replace its existing senior secured credit facility with a new senior secured credit facility. The consummation of this offering is conditioned upon the concurrent termination of its existing credit facility and entering into the new senior secured credit facility.
With oil selling at recent highs of mid-80s, the asset valuation of ATP is looking very strong. Also with the debt market looking like it is starting to function, it will be easier for ATP to raise capital. The company raising new capital bodes exceptionally well for shareholders. 2010 will be a strong year for ATP on operational side, which should reflect in the company’s share price.