Each one in plain English, with the numbers worked through for a shareholder.
1 June 2016debt financing▼ BadMajor
On May 27, 2016 TUSA signed a forbearance agreement with Wells Fargo and certain lenders. The lenders agreed not to enforce their rights over potential breaches of the current ratio (1.00) and senior secured leverage ratio (2.75) for the quarter ended Apr 30, 2016. Forbearance ends on the earlier of July 8, 2016 or a termination event. It was conditioned on the first shortfall installment, paid May 31, and adds minimum liquidity requirements and limits on prepaying other debt. This follows the borrowing base cut and shows the covenants were at risk of being breached.
On Apr 28, 2016 TUSA's lenders cut its borrowing base to $225 million from $350 million. TUSA had $347.5 million borrowed plus $2.5 million of letters of credit, leaving a $125 million shortfall, against about $152 million of cash. TUSA expects to repay the shortfall in three equal monthly installments, the first due by May 31, 2016.
Southeastern Asset Management, Inc. I.D. No, Longleaf Partners Small-Cap Fund I.D. No, O. Mason Hawkins I.D. No. XXX-XX-XXXX reported a Triangle Petroleum Corp shareholding of 2,955,759 shares (3.90% of votes) in a periodic institutional filing.
Southeastern Asset Management, Inc. I.D. No, Longleaf Partners Small-Cap Fund I.D. No, O. Mason Hawkins I.D. No. XXX-XX-XXXX disclosed a new substantial Triangle Petroleum Corp shareholding (11.40% of votes).
On Apr 30, 2015 TUSA amended its Wells Fargo credit agreement. The funded-debt test (4.0x) is replaced with a senior secured debt to EBITDAX cap of 2.75x, which excludes the 6.75% Senior Notes due 2022 issued July 2014. A minimum EBITDAX-to-interest ratio of 2.5x is added, along with a right to cure covenant breaches with capital from Triangle (up to five times, two in any four quarters). The May 2015 redetermination set the borrowing base at $350.0 million, down from the $435.0 million set in Nov 2014.
Keeley Asset Management Corp, John L. Keeley, Jr reported a Triangle Petroleum Corp shareholding of 97,450 shares (0.10% of votes) in a periodic institutional filing.
On Nov 25, 2014 Triangle USA (TUSA) signed a Second Amended and Restated Credit Agreement with Wells Fargo as agent: a $1.0 billion senior secured revolver with the borrowing base set at $435.0 million. It still matures Oct 16, 2018, requires a current ratio of at least 1.0 and funded debt to EBITDAX of no more than 4.0, and is guaranteed by TUSA's domestic subsidiaries. This restates the senior revolver whose base was $355M earlier in 2014 (inference: it replaces that facility).
On November 13, 2014 RockPile increased its Citibank-led revolving credit facility from $100.0 million to $150.0 million, with the accordion still allowing up to $50.0 million more (total $200.0 million). The amendment also loosens covenants on dividends and distributions and raises permitted capital spending. This continues the March 2014 RockPile facility.
2 July 2014asset acquisition disposition● NeutralMajor
On June 30, 2014 Triangle USA closed the Marathon acquisition of about 41,500 net acres for $90.5 million cash, after a $9.5 million downward adjustment from the $100.0 million price, with further adjustments possible. It was funded by the new second-lien facility, the first-lien revolver and a capital contribution from Triangle. The second-lien credit agreement signed June 27, 2014 with Wells Fargo Energy Capital is $60.0 million (plus up to $40.0 million optional additional loans at the agent's discretion), at LIBOR plus 7% or base rate plus 6%, maturing April 16, 2019, and guaranteed by domestic subsidiaries.
