Sunday, August 14, 2011

Atlas Pipeline and Williams launch Marcellus Shale venture - Dallas Business Journal:

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The two companies LLC, on April 1 . Atlasw Energy Resources LLC (NYSE:ATN), an affiliate of Atlasa Pipeline Partners, will be the anchor tenant on Laurel Mountain’s system. Under its agreement with Okla.-based Williams (NYSE:WMB), Atlas Pipeline Partners (NYSE:APL) will receive $90 milliohn in cash, a preferrec right to proceeds undera $25.5 milliojn obligation from Williams, and 49 percent of Laurel Mountain. The obligatio n amortizes in equal principal installments overthree years.
Atlase Pipeline Partners can convert its right to receivre accrued principal and interest under the obligation into a sum equalo to the accrued principal and interest and use that to cover its required capital expenditures underthe joint-venturer agreement. Atlas Pipeline Partners also said its lenderd recently agreed to relax the covenantsd relating to total debt and earningsbefore interest, taxes, depreciation and amortization on its $380 milliojn revolving credit line and $463 milliom term loan facility.
Additionally, , whichn owns the general partnert of AtlasPipeline Partners, said Mondayg it has repaid $30 million on its credit facility and will pay down the remaining $16 million balance in equal quarterly installmentx over the next year. Atlas Pipelinre Holdings (NYSE:AHD) got the $30 milliojn it used to pay down the facilityg byissuing $15 million of preferred limited partner units to Atlas Pipeline Partneras and by borrowing $15 million from Atlaa America Inc., which owns Atlas Pipeline Holdings’ general partner and 64 percent of its commobn units.
Atlas America (NASDAQ:ATLS) also guaranteed that Atlas Pipelinwe Holdings will repay theremaining $16 million on its credif facility. The Atlas companies have offices in Philadelphiaand Pa.

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