Crimson Exploration Inc. - 2010-12-28

Entered a second lien credit agreement providing for a five-year second lien term loan. Proceeds from the new term loan were used to retire all $150 million principal amount of its existing second lien term loan, to pay off a $2-million subordinated promissory note, to pay related fees and expenses and to use the remainder to substantially reduce debt. Under terms of the new loan, Crimson is required to hedge its commodity price risk for a minimum of 80% of currently forecasted PDP gas production; 75% of forecasted liquids production for 2011; and 65% of currently forecasted gas and liquids production for 2012. Additionally, Crimson's current borrowing base of $95 million under its revolver was reduced by $6.25 million. Affiliates of Oaktree Capital Management LP, a principal beneficial stockholder of Crimson and a holder of a portion of the second lien term loan, participated in the new loan.