Resource America, Inc.
1521 Locust Street - 5th Floor
Philadelphia, PA 19102
(215) 546-5388 (facsimile)
Resource America, Inc. Announces $45 Million Energy Credit Facility From PNC, First Union and Key Bank
Philadelphia, PA, 10/12/2021 - Resource America, Inc. (NASDAQ:REXI)(the "Company") announced it has received a new credit facility in the amount of $45 million from a consortium of banks headed by PNC Bank and including First Union and Key Bank. The facility has a maturity date of November 30, 2002, and bears interest at either the prime rate or LIBOR with margins that vary based on facility utilization. Liability on this loan is limited to the Company's energy finance subsidiary Atlas America, Inc. ("Atlas"), and proceeds of this loan are restricted to energy purposes.
The Company, through Atlas and Viking Resources Corporation ("Viking"), which it acquired on August 31, 1999, manages more than 90 partnerships and joint ventures, with an original investment cost of approximately $490 million. Additionally, the Company has an interest in and/or operates more than 3,300 predominantly gas wells and more than 1,375 miles of gas gathering pipeline systems, located primarily in western Pennsylvania, western New York and eastern Ohio. Production on a gas equivalent basis for properties under the Company's management is approximately 20 billion cubic feet per year. Proved and producing reserves under the Company's management have increased as a result of the acquisition of Viking from approximately 189 billion cubic feet to 255 billion cubic feet of natural gas equivalent.
Tony C. Banks, President of Atlas as of October 1, 2021 states, "It is significant that we have expanded our relationships with PNC and Key Bank and established a new relationship with First Union. This facility, along with these new banking relationships, permits Atlas to continue to build the energy business unit of Resource America."
Resource America, Inc. also has substantial operations in equipment leasing, and real estate finance.
Statements made in this release include forward-looking statements, which involve substantial risks and uncertainties. The Company's actual results, performance or achievements could differ materially from those expressed or implied in this release as a result of certain factors, including competition within the energy finance industry, climatic conditions and the price of oil and gas in the Appalachian area, actual versus projected volumetric production from the Company's energy investments, and the cost of supplies and services in the energy industry.