Energy firms find loans come at steep price

New York

ENERGY companies that were all but shut out of debt markets by a 55 per cent drop in oil prices are starting to find investors willing to lend them money to keep drilling - albeit at a steep price.

Resolute Energy Corp, an oil explorer, struck a deal with Highbridge Capital Management that guarantees the lender a return of at least 25 per cent on its US$142 million loan. In return for a US$500 million loan to Linn Energy, Blackstone Group will get an 85 per cent working interest in some of the energy producer's wells.