Trans Energy, Inc. announced that its subsidiary, American Shale Development, Inc. (ASD), closed on a new credit facility with Morgan Stanley Capital Group Inc. (Morgan Stanley) in the amount of $200 million. The facility closed and an initial amount of $102.5 million was funded on May 21, 2014.
The credit facility is in the amount of $200 million, of which $102.5 million was funded at closing to refinance ASD's existing debt and to pay certain fees and expenses in connection with the financing. An additional $47.5 million has been committed and is available to fund growth expenditures during the next two years, based on a formula that makes further availability contingent upon the value of ASD's producing properties as compared to its net debt. An additional $50 million may be made available at Morgan Stanley's discretion.