By PR Newswire, April 10, 2015, 08:00:00 AM EDT
OKLAHOMA CITY, April 10, 2015 /PRNewswire/ -- New Source Energy Partners L.P., a Delaware limited partnership (NYSE:NSLP) (the "Partnership" or "New Source"), today announced that it has entered into an agreement with the Bank of Montreal, as administrative agent, and the other lenders that are parties to the credit agreement governing the Partnership's revolving credit facility (the "Credit Agreement") to postpone the April 1, 2015 scheduled semi-annual redetermination of the borrowing base until May 1, 2015. In addition, the borrowing base available under the revolving credit facility was reduced, effective April 8, 2015, from $90 million to $84 million, which was the amount of borrowings outstanding as of April 8, 2015. The agreement further provides that, prior to the borrowing base redetermination on May 1, 2015, the Partnership will not declare or make any distributions on its common units until the total outstanding borrowings under the revolving credit facility is at or below $55 million.
"We have previously stated that we believe the borrowing base under the Partnership's credit facility would be reduced by $20 million to $30 million," said Kristian Kos, Chairman and Chief Executive Officer. "The lenders are currently finalizing their review in order to determine the updated borrowing base. However, we believe the $20 million to $30 million range is still accurate. The agreement with BMO postpones the redetermination by one month, which allows the Partnership more time to secure financing opportunities currently under review."
Margin is so dangerous when stocks are going down and brokerages change the percentages that they give on the stock you have to sell to pay on margin. I sacrificed a lot to get off margin and now have most of my assets in a non margin account to avoid being tempted to ruin myself again. It is a strange freedom not having to use my distributions toward margin interest and don't want to risk my whz trading in and out. Best to you with your plan.
whz is the biggest percentage of my portfolio so I am definitely not gloating. I thought they could do better and were a lot less risky than the mlps with an 8 or 10 cent distribution. As things are very bad now I am open to suggestion if you think there is something that is more secure & comparable to whz in oil & gas.
whz may be cheaper in a couple of weeks after it goes ex if you wait. I bought a bunch more between 5 and 5.50 about a month ago because it was so cheap. I think whz is the best but have so much I thought I would try 100 shares of per - a little late just after they announced a good distribution and will probably try to get more later if it goes down.