Warren Resources Converts Refinanced Debts into $200M Cash

Warren Resources, an independent oil and gas company headquartered in New York City whose drilling is focused primarily in California but with a small operation in the Pennsylvania Marcellus Shale, has just refinanced $250 million worth of existing loans and notes and somehow has wound up with just over $200 million in cash as part of the process. How you can refinance loans and pull out that much cash we have no clue. If you understand the following financial machinations with its talk about first lien credit lines, second lien debt, incurrence tests, LIBOR floors and other financial mumbo jumbo, please enlighten us!...

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