American Eagle Energy Corporation has closed on a Senior Credit Facility (Credit Facility) with Morgan Stanley Capital Group Inc. (Morgan Stanley). The Credit Facility is a senior secured reserve based credit facility with a maximum potential commitment of up to $200 million. Initially, $68 million is committed and available for funding. An additional $40 million is earmarked for the purpose of purchasing additional interests in the Spyglass Project area from a joint venture partner (Spyglass Transaction). The availability of the $40 million is contingent upon the closing of the Spyglass Transaction and the Company meeting certain financial covenants and conditions precedent. An additional $92 million is initially uncommitted.

The Company plans to draw the full $68 million available to retire the Macquarie Bank Limited swap facility, which it entered into at the end of last year, for approximately $18 million and to pay fees and expenses associated with the Credit Facility. American Eagle will use the remaining proceeds for working capital, to fund the Company's well development program, to acquire additional acreage, and for other general corporate purposes.

Tags: American Eagle Energy