SEC Filing Summary: Tengasco, Inc. (Form 8-K)
Business Context and Reporting Period
This Form 8-K was filed by Tengasco, Inc. on July 30, 2010. The company is incorporated in Tennessee and operates in the oil and gas sector. The filing reports on a material definitive agreement regarding the company's credit facility.
Key Financial Metrics
- Revolving Credit Facility Limit: Increased borrowing base from $11 million to $14 million.
- Maximum Facility Cap: Loans and letters of credit are limited to the lesser of $20 million or the borrowing base.
- Outstanding Borrowings: $9.9 million (remained unchanged following the amendment).
- Interest Rate: Set to the greater of Prime plus 0.25% or 5.25% per annum.
- Maturity Date: Extended to January 30, 2012.
- Collateral: Secured by substantially all producing and non-producing oil and gas properties, pipeline, and methane project assets.
Material Changes
On July 30, 2010, Tengasco, Inc. assigned its revolving credit facility from Sovereign Bank of Dallas to F&M Bank & Trust Company. Concurrently, the company entered into an amendment that:
- Increased the borrowing base by $3 million.
- Eliminated the monthly commitment reduction.
- Extended the maturity date.
- Adjusted the interest rate structure.
The filing does not provide revenue, profit, cash flow, or margin data for the period.
Outlook, Risks, and Covenants
The credit facility includes covenants requiring compliance with leverage, interest coverage, minimum liquidity, and general and administrative coverage ratios. The next borrowing base review is scheduled for January 2011. The company has not undertaken additional borrowing despite the increased borrowing base.
Investor Verification Checklist
- Verify the current status of the $9.9 million outstanding debt and any subsequent drawdowns.
- Confirm compliance with the new leverage and interest coverage covenants.
- Monitor the outcome of the January 2011 borrowing base review.
- Assess the impact of the interest rate floor (5.25%) on future interest expenses.