ROK Resources proposes C$75 million loan acquisition financing

Chicago, Dec. 20 – ROK Resources, Inc. has entered into a commitment letter for a C$75 million senior secured loan facility with a Canadian chartered bank, according to a press release.

The facility is expected to be comprised of a C$22.5 million line of credit and a C$52.5 million term loan.

Proceeds will be used to fund the company’s acquisition of certain oil and gas assets in Southeast Saskatchewan from an intermediate energy producer.

The acquisition will be funded with C$26.5 million in cash and an asset divestiture to the energy producer of non-core assets.

The senior loan also constitutes a restructuring of ROK’s credit facility with Anvil Channel Energy Solutions for C$42 million and reduces interest for the borrower.

The acquisition is expected to close around Jan. 24, subject to finalizing the senior loan facility and other regulatory matters.

ROK Resources, headquartered in Regina, Sask., primarily engages in exploring for petroleum and natural gas development activities in Saskatchewan.

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