New Source to skip Oct. 15 dividend on 11% convertible preferreds due to borrowing base shortfall

By Susanna Moon

Chicago, Sept. 28 – New Source Energy Partners LP said it will be unable to pay quarterly dividends on its 11% series A cumulative convertible preferred units due to a pending borrowing base deficit under its revolving credit facility.

The distribution had been set for Oct. 15.

New Source Energy “will be working with our lenders to finalize the new borrowing base over the next several days, as well as exploring alternatives to remedy the deficiency to allow the partnership to resume making distributions on the preferred units as soon as possible,” Kristian Kos, the company’s chairman and chief executive officer, said in a company press release.

Kos explained that the company is not in a deficiency at this time but that is expected to be in a borrowing base deficiency after its biannual redetermination in early October, which will prevent the company from making a dividend on Oct. 15.

Oklahoma City-based New Source Energy is an independent oil and natural gas properties company.

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