Penn Virginia plans $150 million in new debt for acquisition

By Sara Rosenberg

New York, July 31 – Penn Virginia Corp. has received a commitment for $150 million in debt financing to help fund its acquisition of Eagle Ford assets located primarily in Lavaca County, Texas for $205 million in cash from Devon Energy Corp., according to a news release.

Closing is expected on or before Sept. 30.

Other funds for the transaction will come from borrowings under the company’s credit facility.

The net purchase price is expected to be around $190 million due to an anticipated downward adjustment by about $15 million to reflect estimated net cash flows from the effective date to closing.

The company is also in discussions with its bank lending group to further amend and increase its reserve-based credit facility beyond the current borrowing base of $200 million.

Penn Virginia is a Houston-based independent oil and gas company.

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