ATP Closes New $1.05 Billion Senior Term Loan and Adds a $600 Million Asset Sale Facility

June 27, 2008 12:26 PM EDT

HOUSTON--(BUSINESS WIRE)--

ATP Oil & Gas Corporation (NASDAQ: ATPG) today announced that it has closed a new senior secured term loan facility. Key components of the facility include:

    --  Reducing its first lien senior secured term loan from $1.20
        billion to $1.05 billion and extending maturity by over four
        years from April 2010 to July 2014

    --  Eliminating the $210 million subordinated loan with an all-in
        interest rate of 15%

    --  Adding a $600 million asset sale facility that enables ATP to
        accomplish its previously announced deleveraging goal.

T. Paul Bulmahn, Chairman and CEO of ATP Oil & Gas Corporation, stated, "The new term facility provides two very important pieces of capital for ATP. First, it puts in place a truly long-term, six-year financing of $1.05 billion at rates that are extremely competitive in today's market. This facility will provide ATP the ability to continue to execute its plans for development and acquisitions for the next several years. Secondly, and equally important, the new facility provides an asset sale facility that will enable ATP to reduce its debt by $600 million in the near term in accordance with the 2008 ATP Employee Challenge goals established in March 2008. We are well under way in our program to monetize value already created in our property, platform and infrastructure assets."

The $1.05 billion facility matures in July 2014. The $600 million asset sale facility has a bullet maturity in January 2011 and allows a pay down at par associated with the ATP Employee Challenge announced in March 2008. Both facilities were issued with an original issue discount of 2.5% and an interest rate of 5.25% + LIBOR with a floor of 3.25% or approximately 8.5%. The new facility carries similar restrictions and covenants as the existing facility that is being retired. The new term loan facility replaces a $1.2 billion senior secured loan that was scheduled to mature in April 2010 and a $210 million subordinated loan that was scheduled to mature in September 2011. Proceeds of the new facility will be used to refinance existing indebtedness and for general corporate purposes.

    Credit Suisse acted as sole lead arranger for the financing.

    About ATP Oil & Gas Corporation

ATP Oil & Gas is an international offshore oil and gas development and production company with operations in the Gulf of Mexico and the North Sea. The company trades publicly as ATPG on the NASDAQ Global Select Market. For more information about ATP Oil & Gas Corporation, visit www.atpog.com.

Forward-looking Statements

Certain statements included in this news release are "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. ATP cautions that assumptions, expectations, projections, intentions, or beliefs about future events may, and often do, vary from actual results and the differences can be material. Some of the key factors which could cause actual results to vary from those ATP expects include changes in natural gas and oil prices, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as our ability to access them, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting our business. More information about the risks and uncertainties relating to ATP's forward-looking statements are found in our SEC filings.

Source: ATP Oil & Gas Corporation

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