|Venoco CEO gets more time for buyout financing|
Denver Business Journal by Mark Harden, New Media EditorDate: Wednesday, June 13, 2012, 4:31pm MDT
Related: Energy, Mergers and Acquisitions, Oil & gas
Venoco Inc. Chairman and CEO Timothy Marquez
Mark HardenNew Media Editor- Denver Business Journal Email | Facebook | Twitter | Broadway & 17th blog
Venoco Inc. Chairman and CEO Timothy Marquez has been given more time to line up financing for his planned $735 million buyout of the company.
Under terms of his offer for the Denver oil and gas company (NYSE: VQ), Marquez originally had until Tuesday, June 12, to provide the Venoco board with financing commitment letters.
But Marquez asked that the deadline be extended to July 20, and the board has granted that request, Venoco disclosed in a securities filing Wednesday.
“The [buyout agreement] contemplates that it might be necessary to provide Mr. Marquez some additional time to secure financing,” Rick Walker, chairman of a special committee of the Venoco board overseeing the buyout, “and allows for an extension of the financing deadline if the committee believes an extension is reasonable under the circumstances.”
The Pacific Coast Business Times of Santa Barbara reports that Marquez needs to finance nearly $400 million to close the deal.
> MORE: The DBJ’s June 2011 profile of Tim Marquez.
Venoco shareholders voted June 5 to approve Marquez’s $12.50-per-share buyout offer, which he announced last August. He plans to take the company private.
The acquisition is to be made through a company called Denver Parent Corp.
Marquez and his wife already own 50.3 percent of the shares in Venoco (NYSE: VQ).
Venoco focuses its exploration efforts in California, both offshore and onshore. It operates three offshore platforms in the Santa Barbara Channel.
Marquez said in January that he plans to give up the CEO title in the third quarter of 2012 and serve as executive chairman, guiding growth and acquisitions. COO Ed O’Donnell is to succeed him as CEO.
Mark Harden is print and digital content editor for the Denver Business Journal and writes for the "Broadway & 17th" blog. Email: firstname.lastname@example.org.