Atlas Energy sets Wednesday launch for $850 million revolver

By Sara Rosenberg

New York, June 5 - Atlas Energy Resources LLC has scheduled a bank meeting for Wednesday to launch its proposed $850 million five-year senior secured revolving credit facility, according to a company spokesman.

JPMorgan is the lead bank on the deal.

Pricing on the revolver can range from Libor plus 100 to 225 basis points and the unused fee can range from 25 bps to 37.5 bps, based on usage.

Proceeds will be used to help fund the acquisition of DTE Gas & Oil Co. for $1.225 billion in cash, subject to purchase price adjustments and customary closing conditions.

Other acquisition financing will come from an already completed private placement to institutional investors of $600 million, representing 24 million common and class D units having a weighted average price of $25.00 per unit.

In addition, the company is contemplating an offering in the high-yield market sometime in the near future to repay a high percentage of the amount of borrowings drawn under the new revolver for the acquisition.

The transaction is expected to close on or about June 30.

Atlas Energy is a Moon Township, Pa., energy company focused on the development and production of natural gas and, to a lesser extent, oil principally in the Appalachian Basin.

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