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Subsequent Events
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6 Months Ended |
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Jun. 30, 2014
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| Subsequent Events [Abstract] | |
| SUBSEQUENT EVENTS |
SUBSEQUENT EVENTS
The Company performed an evaluation of subsequent events through the date of the issuance of these financial statements and determined that no additional items require recognition or disclosure, except for the following:
Dividend Declaration
On July 30, 2014, the Company's Board of Directors declared the second quarter 2014 distribution of $0.13 per share. The distribution is payable on August 29, 2014 to shareholders of record on August 15, 2014.
Credit Facility
The Company has signed a non-binding term sheet for a new credit facility that will replace the Company’s current credit facility. Management of the Company expects to have this new credit facility in place in the third quarter and anticipates using the credit facility thereafter to fund property acquisitions, make capital improvements, or for other permitted corporate purposes. Management of the Company sought this new credit facility to provide greater financial flexibility in funding Company growth.
Securing the new credit facility is subject to a number of usual and customary conditions and processes, for which the signed term sheet is just the first step. Those conditions include, among other things, lender due diligence, agreement on definitive terms and final documents, and the negotiation of acceptable fee arrangements.
Black Bison Loan Agreements
On July 23, 2014, the Company increased its secured financing to Black Bison from $11.5 million to $15.3 million. The Company executed an amendment to the Loan Agreement previously entered into March 13, 2014, to increase the loan to $12 million, and entered into an additional loan for $3.3 million from a taxable REIT subsidiary of the Company, on substantially the same terms (the "TRS Loan"). The purpose of the increase in the secured financing was to fund the acquisition and development of real property and related equipment that will provide water sourcing, water disposal, or water treating and recycling services for the oil and natural gas industry. There were no other material changes to the terms of the Loan Agreement. In connection with the Amendment and the TRS Loan, the Company fully funded the remainder of the $15.3 million capacity of the combined loans.
In anticipation of the agreements described above, Corridor Bison assigned to CorEnergy BBWS its rights and obligations in the Warrant dated March 13, 2014. That Warrant granted to its holder the right to purchase up to 15 percent of the outstanding equity of Black Bison Intermediate Holdings, LLC (“Intermediate Holdings”). As a condition of the TRS Loan, the parties entered into an Amended and Restated Warrant, pursuant to which the amount available to purchase thereunder was increased to 18.72 percent of the outstanding equity of Intermediate Holdings. CorEnergy BBWS paid $51 thousand for the increase in the amount that could be purchased pursuant to the Warrant. The amount paid was determined to be the current value of the incremental amount that could be purchased under the Warrant.
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