(Source: PrimeNewswire)
HOUSTON, Oct. 6, 2009 (GLOBE NEWSWIRE) -- NGP Capital Resources Company (Nasdaq:NGPC) today announced that it has extended the maturity of its Investment Credit Facility ("the Investment Facility") from August 31, 2010 to August 31, 2012. The Investment Facility is priced at LIBOR plus 425 to 575 basis points, depending on the amount drawn. The Company paid a 100 basis point fee in conjunction with the extension of the maturity. Three of the four banks in the syndicate reduced their commitments, resulting in the reduction of the current commitments under the Investment Facility to $67.5 million from $87.5 million.
John Homier, President and CEO stated, "While we are disappointed that our banks have seen it necessary to reduce their commitments to the Company, we understand the banking industry's general need to reduce commitments across the board as an outgrowth of the ongoing banking crisis and realignment. Given that environment, we are pleased with the confidence our banks have placed in the Company as evidenced by the extension of credit under the new facility for two additional years. This new facility along with our existing liquidity gives the Company the ability to continue to judiciously grow its portfolio of investments in energy related companies."
Steve Gardner, Chief Financial Officer stated, "As of today, we have no debt outstanding on our Investment Facility and in excess of $40 million of cash on hand, leaving us with sufficient capacity to fund new investments. While we are disappointed in the reduction of commitments, it was important to us to extend the Facility to 2012, in effect, giving us a three year facility and better matching our typical investment horizon. We expect that over the course of the next three years, the U.S. banking market will improve sufficiently to permit us to increase the level of commitments on the Facility."
About NGP Capital Resources Company
NGP Capital Resources Company is a closed-end, non-diversified management investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940. The Company's investment portfolio is principally invested in energy related private companies. From time to time, the Company may also invest in public companies. The Company invests primarily in senior secured and mezzanine loans in furtherance of its business plan and in some instances receives equity investments in portfolio companies in connection with such investments. NGP Capital Resources Company is managed by NGP Investment Advisor, LP, an affiliate of NGP Energy Capital Management.
