HOUSTON, Dec. 7 /PRNewswire/ -- KCS Energy, Inc. (NYSE: KCS) today
reported that it has entered into a new $100 million secured revolving credit
facility with CIBC World Markets Corp. and Guaranty Bank.
The facility, which has an initial borrowing base of $32.5 million, bears
interest at a rate between LIBOR plus 2% and LIBOR plus 3%, depending on the
percentage of the borrowing base utilized. Proceeds from the facility will be
used for general corporate purposes as they relate to the acquisition,
development and production of oil and gas properties, the repurchase and
retirement of Senior Notes and for working capital. The new facility replaces
the bank credit facilities that were paid off in February 2001.
Commenting on the new credit facility, James W. Christmas, President and
Chief Executive Officer said, "We are very pleased in the continued confidence
that CIBC World Markets Corp., which has been our lead bank in the past, has
shown in KCS and its growth strategy. We are also pleased to have established
a new relationship with Guaranty Bank. As we approach 2002, the flexibility
provided by the new credit agreement will allow KCS to take advantage of the
significant opportunities provided by our growing inventory of projects as
well as strategic acquisitions."
KCS is an independent energy company engaged in the acquisition,
exploration and production of natural gas and crude oil with operations in the
Mid-Continent and Gulf Coast regions. The Company also purchases reserves
(priority rights to future delivery of oil and gas) through its Volumetric
Production Payment program. For more information on KCS Energy, Inc., please
visit the Company's web site at http://www.kcsenergy.com .
This press release contains forward-looking statements that involve a
number of risks and uncertainties. Among the important factors that could
cause actual results to differ materially from those indicated by such
forward-looking statements are delays and difficulties in developing currently
owned properties, the failure of exploratory drilling to result in commercial
wells, delays due to the limited availability of drilling equipment and
personnel, fluctuations in oil and gas prices, general economic conditions and
the risk factors detailed from time to time in the Company's periodic reports
and registration statements filed with the Securities and Exchange Commission.
SOURCE KCS Energy, Inc.
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Related links:
http://www.kcsenergy.com
CONTACT:
James W. Christmas, President and CEO of KCS
Energy, +1-713-877-8006, or General Info, Marilynn Meek,
+1-212-445-8451, Media, Judith Sylk-Siegel, +1-212-445-8431, or
Analysts, Beth Lewis, +1-617-369-9242, all of FRB Weber Shandwick
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