SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report January 10, 2000
(Date of earliest event reported) December 30, 1999
RAM Energy, Inc.
(Exact name of registrant as specified in its charter)
Delaware 333-42641 52-1535102
(State or other juris- (Commission (IRS Employer
diction of incorporation) File Number) Identification)
5100 East Skelly Drive
Tulsa, Oklahoma 74135
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (918)663-2800
N/A
(Former Name or Former Address, if Changed Since Last Report)
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ITEM 5. OTHER EVENTS
In a transaction closed December 30, 1999, effective as
of December 27, 1999, RAM Energy, Inc. (the "Company") completed
the refinancing of its senior secured credit facility with
Foothill Capital Corporation, a Wells Fargo company. The
refinancing was preceded on December 22 by the Company and its
prior lenders, Union Bank of California, N.A., and Den norske
Bank ASA, executing an amendment to the then-existing credit
facility to restore the commitment to $30.0 million and increase
the borrowing base to $25.0 million, which amount was fully
advanced. The refinancing was effected by Foothill purchasing
from Union and Den norske the Company's outstanding $25.0 million
indebtedness, together with all rights under the mortgages,
security agreements and other loan documents previously executed
in connection therewith.
The Company and Foothill have entered into an Amended
and Restated Loan and Security Agreement which provides for up to
$30.0 million of revolving credit, subject to borrowing base
restrictions and applicable limitations under the indenture
governing the Company's $115.0 million senior notes due 2008.
The initial term of the facility is three years and the interest
rate is the Wells Fargo prime rate plus 2.0%. The Company is
required to pay monthly commitment fee on the amount by which the
$30.0 million commitment exceeds the average amount of the
advances outstanding, together with a monthly loan servicing fee.
The borrowing base under the Amended Loan Agreement initially has
been set at $26.5 million, subject to monthly redeterminations
based upon an agreed percentage of the discounted present value
of the Company's proved developed producing reserves priced at
the average of the oil and gas futures contract prices for the 24
months succeeding each redetermination date. The Amended Loan
Agreement contains customary covenants which, among other things,
require periodic financial and reserve reporting and the
maintenance of certain financial ratios and limit the Company's
incurrence of indebtedness, liens, dividends, loans, mergers,
transactions with affiliates, investments and sales of assets.
Proceeds of the advances under the Amended Loan Agreement may be
used for general corporate purposes, including payment of
interest under the senior notes provided a specified level of
availability is maintained under the facility. As with the prior
credit facility, the indebtedness under the Amended Loan
Agreement is secured by substantially all of the Company's oil
and gas properties and other assets.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
RAM Energy, Inc.
January 10, 2000 By LARRY E. LEE
Larry E. Lee
President and Chief Executive Officer
