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Penn Virginia Resource Partners L.P. Reports Operating Results (10-Q)

October 29, 2010 | About:
TraderMark

10qk

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Penn Virginia Resource Partners L.P. (PVR) filed Quarterly Report for the period ended 2010-09-30.

Penn Virginia Resource Partners L.p. has a market cap of $1.37 billion; its shares were traded at around $26.64 with a P/E ratio of 21.4 and P/S ratio of 2.1. The dividend yield of Penn Virginia Resource Partners L.p. stocks is 7.2%. Penn Virginia Resource Partners L.p. had an annual average earning growth of 17.4% over the past 10 years.PVR is in the portfolios of Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

On August 13, 2010, we entered into an amended and restated secured credit agreement (the Revolver) increasing our borrowing capacity under the Revolver to $850 million. As of September 30, 2010, net of outstanding indebtedness of $365.0 million and letters of credit of $1.6 million, we had remaining borrowing capacity of $483.4 million on the Revolver. The Revolver matures August 13, 2015. The Revolver includes a $10 million sublimit for the issuance of letters of credit and a $25 million sublimit for swingline borrowings. We have an option, upon the receipt of commitments from one or more lenders, to increase the commitments under the Revolver by up to an additional $200 million, to a total of $1.05 billion. The Revolver is available to provide funds for general partnership purposes, including working capital, capital expenditures, acquisitions and quarterly distributions. The interest rate under the Revolver fluctuates based on the ratio of our total indebtedness-to-EBITDA. Interest is payable at base rate plus an applicable margin ranging from 1.25% to 2.25% if we select the base rate indebtedness option under the

During the nine months ended September 30, 2010, we incurred $19.0 million of debt issuance costs related to the issuance of the $300 million Senior Notes and for the amended and restated Revolver. The net borrowings during both the nine months ended September 30, 2010 and 2009 were used to finance acquisition and expansion projects.

Revolver. On August 13, 2010, we entered into an amended and restated secured credit agreement (the Revolver) increasing our borrowing capacity under the Revolver to $850 million. As of September 30, 2010, net of outstanding indebtedness of $365.0 million and letters of credit of $1.6 million, we had remaining borrowing capacity of $483.4 million on the Revolver. The Revolver matures August 13, 2015. The Revolver includes a $10 million sublimit for the issuance of letters of credit and a $25 million sublimit for swingline borrowings. We have an option, upon receipt of commitments from one or more lenders, to increase the commitments under the Revolver by up to an additional $200 million, to a total of $1.05 billion. The Revolver is available to provide funds for general partnership purposes, including working capital, capital expenditures, acquisitions and quarterly distributions. The interest rate under the Revolver fluctuates based on the ratio of our total indebtedness-to-EBITDA. Interest is payable at base rate plus an applicable margin ranging from 1.25% to 2.25% if we select the base rate indebtedness option under the Revolver or at a rate derived from LIBOR plus and applicable margin ranging from 2.25% to 3.25% if we select the LIBOR-based indebtedness option. The weighted average interest rate on borrowings outstanding under the Revolver during the nine months ended September 30, 2010 was approximately 2.4%. We do not have a public rating for the Revolver. As of September 30, 2010, we were in compliance with all of our covenants under the Revolver.

Senior Notes. In April 2010, we sold $300.0 million of Senior Notes due on April 15, 2018 with an annual interest rate of 8.25%, which is payable semi-annually in arrears on April 15 and October 15 of each year. The Senior Notes were sold at par, equating to an effective yield to maturity of approximately 8.25%. The net proceeds from the sale of the Senior Notes of approximately $292.6 million, after deducting fees and expenses of approximately $7.4 million, were us

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