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Subsequent Events
6 Months Ended
Jun. 30, 2012
Subsequent Events [Abstract]  
Subsequent Events

NOTE 17 – SUBSEQUENT EVENTS

 

In preparing the accompanying financial statements, we have reviewed events that have occurred after June 30, 2012, through the issuance of the financial statements.

 

9.25% Senior Notes Issuance

 

On July 30, 2012, we and our wholly-owned subsidiary QRE FC, issued $300 million of 9.25% Senior Notes due 2020. The Senior Notes were issued at 98.62% of par.  We received approximately $291.2 million of cash proceeds, net of the underwriting discount, with total net proceeds of $290.7 million, after $0.5 million of estimated offering costs. We used the cash proceeds to reduce indebtedness outstanding under our revolving credit facility. Refer to Note 9 – Long-Term Debt for further details.

 

Restricted Unit Issuance

 

On July 25, 2012, we granted 447,351 restricted common unit awards to employees of QRM.  The fair value of the granted awards was calculated based on the closing price of our common units as of the grant date, $18.19 per common unit and we expect to recognize this in expense over the vesting period.

 

Revolving Credit Facility

 

Under the Credit Agreement we are required to reduce our borrowing base by an amount equal to 0.25 multiplied by the stated principal amount of any issuances of senior notes. As a result of the issuance of the Senior Notes on July 30, 2012, our borrowing base was reduced by $75 million to $655 million from $730 million. On July 30, 2012, we made a payment on our outstanding borrowings under our revolving credit facility of $291.5 million using the cash proceeds from the Senior Notes issuance and cash on hand. In addition, on August 3, 2012, we borrowed an additional $20.0 million from our revolving credit facility, resulting in total borrowings outstanding of $325 million.  

 

Interest Rate Derivatives Termination

 

On July 31, 2012, we made a net payment of $15.0 million related to the early termination of a portion of our interest rate derivative contracts. The terminated contracts were set to expire at various times through the fourth quarter of 2015.

 

Asset Disposition

 

On August 3, 2012, we executed a purchase and sales agreement (“PSA”) to sell oil and gas assets located in Oklahoma to a third party for approximately $2.7 million, subject to closing costs. We expect the closing of the sale to be on August 17, 2012