LAFAYETTE, La., Oct. 17, 2016 /PRNewswire/ — PetroQuest Energy, Inc. (NYSE: PQ) announced today that it has entered into a $50 million multi-advance term loan agreement with certain lenders, and Wells Fargo Bank, National Association, as administrative agent for such lenders. The loan agreement provides a multi-advance term loan facility with borrowing availability for three years of up to $50 million, subject to compliance with the covenants therein. Any term loans advanced under the loan facility mature on October 17, 2020. The loan facility replaces the Company’s prior senior secured bank credit facility with JPMorgan Chase Bank, N.A, which had a borrowing base of $0, and is secured by the same collateral that secured the prior facility.
“Having the ability to create meaningful liquidity from our asset base is another important step towards growing the Company,” said Charles T. Goodson, Chairman, Chief Executive Officer and President. “Through our debt exchanges, we have extended the maturity on or repaid over 93% of our December 31, 2015 long-term debt. With our debt maturities extended and enhanced liquidity position in place, we are now focused on initiating our Cotton Valley drilling program before the end of the year.”