PITTSBURGH, May 10, 2010 /PRNewswire via COMTEX/ -- CNX Gas Corporation (NYSE: CXG), a leading Appalachian producer, has completed a $700 million Senior Secured Credit Agreement, effective May 7, 2010, to replace an existing $200 million facility. The new agreement provides for a syndicated four-year $700 million revolving credit facility.
"This new facility further enhances our financial flexibility by expanding the size of the facility and extending the term to 2014," said William J. Lyons, executive vice president and chief financial officer. "CNX Gas has nearly doubled its proved reserve base and its annual production since this facility was last set in October of 2005. The strong response we received from our banking partners shows continued confidence in the company, its strategy and in the fundamentals of the natural gas sector." The facility is secured by the assets of the company. Collateral will be provided to the banks and shared equally and ratably with the holders of CONSOL Energy Inc. 7-7/8% bonds maturing in 2012.
Proceeds from the revolving credit facility will be used for general corporate purposes of CNX Gas and its subsidiaries.
PNC Bank, National Association, acted as Administrative Agent and Bank of America, N.A., acted as Syndication Agent for the facility. The Bank of Nova Scotia, The Royal Bank of Scotland PLC, and Wells Fargo Bank, National Association acted as Co-Documentation Agents. PNC Capital Markets LLC and Bank of America Securities LLC acted as Bookrunners and Joint Lead Arrangers. There are 16 lending institutions in the syndicate.
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