Article: Cano Petroleum Enters Agreement for $25 Million Subordinated Term Credit Facility and Provides Operational Update.

FORT WORTH, Texas -- Cano Petroleum, Inc (Amex: CFW) today announced that it has entered into a $25 million Subordinated Term Credit Facility with UnionBanCal Equities, Inc. (UBE). Cano will immediately draw $15 million which will be used to pay down funded debt under its Senior Secured Facility. After the payment, the Senior borrowing will be $34.5 million which is 58% of the $60 million borrowing base.

Significant terms of the agreement include:

Maturity: 3 years with two 1-year extensions at UBE's sole discretion

Interest rate: So long as the Debt Coverage Ratio is less than or equal to 4:00 to 1:00, LIBOR +5.75%; otherwise, LIBOR +6.00% - ...

Related newspaper, magazine, and journal articles:

 
 
Newsweek Harper's Magazine The Washington Post Chicago Tribune Crain's Chicago Business PRNewswire Pediatric News The Nation Advertising Age The Economist (US) A FREE trial gives you access to over 80 million articles! Access over 6,500 publications with a FREE trial!