Miller lines up $250M in financing

Miller Energy Resources Inc. says it has secured a three-year, $250 million financing deal with a banking syndicate led by KeyBank.

Miller, in a June 3 press release, described the financing as a “reserve-based revolving credit facility” with an initial borrowing base of $60 million.

“The company drew $20 million under the revolver at closing which will be used to provide working capital for development drilling in Alaska,” Miller said.

Miller is a publicly traded company based in Knoxville, Tennessee. It operates in Alaska through its subsidiary, Cook Inlet Energy LLC. CIE-operated properties include the West McArthur River oil field, the Osprey platform in the offshore Redoubt unit and the North Fork natural gas field.

Parent company Miller has worked relentlessly to raise capital ever since its Alaska entry in late 2009.

Key’s corporate banking unit, KeyBanc Capital Markets Inc., arranged the new financing deal, Miller said. KeyBanc Capital Markets has an oil and gas team based in Houston.

The credit facility will give Miller access to development capital at much lower interest rates than previously available, the company said.

“With its deposit base in Alaska and strong capital markets capabilities, KeyBank is a perfect partner for us and we are excited to begin a long-term relationship with them and the other new participants in our revolving credit syndicate,” said Scott Boruff, Miller’s chief executive. “We believe the facility and the $56.6 million of submitted Alaska tax rebates provide a clear path to fully funding all of our planned capital expenditures in Cook Inlet for the year.”

- Wesley Loy