

wsj_0329

11/01/89


WSJ891101-0035 = 891101 891101-0035.
Business Brief -- Coda Energy Inc.: @ Oil and Gas Firm Arranges @ $50 Million Credit Facility 11/01/89 WALL STREET JOURNAL (J) CODA BUYBACKS, REDEMPTIONS, SWAP OFFERS (BBK) TENDER OFFERS, MERGERS, ACQUISITIONS (TNM)



Coda Energy Inc. said it arranged a $50 million credit facility with NCNB Texas National Bank, a unit of NCNB Corp., of Charlotte, N.C. The Dallas oil and gas concern said that $10 million of the facility would be used to consolidate the company's $8.1 million of existing bank debt, to repurchase 4 million of its 4.9 million shares outstanding of Series D convertible preferred stock, and to purchase a 10% net-profits interest in certain oil and gas properties from one of its existing lenders, National Canada Corp. The remaining $40 million can be used over three years for oil and gas acquisitions, the company said.

Ted Eubank, Coda's president, said the loan carries an interest rate of prime plus one percentage point, with 85% of the company's net oil and gas revenue each month dedicated to repayment. The company put up "virtually all" of its oil and gas properties as collateral, he said.


































