Goodrich Petroleum Announces Clarification of Various Bear Stearns Agreements
28 March 2008 - 8:02AM
PR Newswire (US)
HOUSTON, March 27 /PRNewswire-FirstCall/ -- Goodrich Petroleum
Corporation ("GDP") today announced that, as a result of a ratings
upgrade of The Bear Stearns Companies, Inc. ("BSC") debt by
Standard and Poors ("S&P") on March 24, 2008, its obligation to
transfer its rights and obligations under the Capped Call Agreement
entered into in December 2007 to an entity with a higher credit
rating has been cured. With the upgrade, The Bear Stearns
Companies, Inc.'s credit ratings stood at Baa1 by Moody's and AA-
by S&P as of that date. To recap the provisions of the two
agreements discussed in its press release dated March 20, 2008, the
Share Lending Agreement (SLA) requires collateral to be posted by
an affiliate of Bear Stearns if its credit rating is below either
A3 by Moody's or A- by S&P. Thus, as of this date, the
collateral requirement is still in place, and is marked to market
on a daily basis depending on the value of GDP shares at the close
of each day's trading. The Capped Call Agreement requires an
affiliate of BSC to transfer its rights and obligations within 30
days if its credit rating is below either Baa1 by Moody's or BBB+
by S&P. Thus the recent upgrade by S&P eliminated this
requirement as of March 24, 2008. Certain statements in this news
release regarding future expectations and plans for future
activities may be regarded as "forward looking statements" within
the meaning of the Securities Litigation Reform Act. They are
subject to various risks, such as financial market conditions,
operating hazards, drilling risks, and the inherent uncertainties
in interpreting engineering data relating to underground
accumulations of oil and gas, as well as other risks discussed in
detail in the Company's Annual Report on Form 10-K and other
filings with the Securities and Exchange Commission. Although the
Company believes that the expectations reflected in such
forward-looking statements are reasonable, it can give no assurance
that such expectations will prove to be correct. Goodrich Petroleum
is an independent oil and gas exploration and production company
listed on the New York Stock Exchange. The majority of its
properties are in Louisiana and Texas. DATASOURCE: Goodrich
Petroleum Corporation CONTACT: Robert C. Turnham, Jr., President,
or David R. Looney, Chief Financial Officer, both of Goodrich
Petroleum Corporation, +1-713-780-9494 Web site:
http://www.goodrichpetroleum.com/
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