RAM Energy LLC Announces the Closing of a $41mm Main Street Lending Credit Facility with Vast.Bank in Tulsa, OK
On September 4, 2020 RAM Energy LLC (“RAM”) closed a $40.8mm credit facility with Vast.Bank in Tulsa, OK as agent for a Main Street Lending Facility made available under the 2020 CARES Act (“Facility”). Use of proceeds will be to repay existing long-term debt, service accounts payable, prepare for the completion of two drilled but uncompleted wells (“DUCs”) and for general corporate purposes. The Facility will mature on September 4, 2025 and is structured as a single-draw, delayed-amortization term-loan facility. The Facility will bear interest at LIBOR + 3.0% and interest payments will be PIK for one-year.
With proceeds from the Vast.Bank facility and cash flow from operations, RAM will have sufficient capital available to fund the completion of the two DUCs as well any additional requirements in 2020 and 2021. In addition, RAM will maintain an active hedging program.
Larry Lee, President and CEO of RAM, said “We are very excited about our new relationship with Vast.Bank. They have proven themselves to be client-centric and can be trusted to execute when it matters most. We look forward to a long and mutually beneficial relationship with Vast.Bank.”Return