Callon completes $100M secured credit agreement

Published 12:00 am Sunday, February 7, 2010

NATCHEZ — Callon Petroleum Company (NYSE: CPE) announced recently that it has completed a $100 million third amended and restated senior secured credit agreement with Regions Bank as the sole arranger and administrative agent.

The Credit Agreement provides an initial borrowing base of $20 million, which will be reviewed and re-determined on a semi-annual basis. There are no borrowings outstanding under the credit agreement, which matures on Sept. 25, 2012.

The new Credit Agreement replaces the company’s existing borrowing base facility. Borrowings will be used for capital expenditures and general corporate purposes.

“We are pleased to announce this new credit facility and to continue Callon’s long-standing relationship with Regions Bank,” said B.F. Weatherly, chief financial officer. “This agreement adds to our strong liquidity position and will further our growth in 2010,” he adds.