The purchase price was the sum of $160 million of consideration at closing, consisting of $80 million in cash, $65 million of common units of Penn Virginia GP Holdings (PVG) and $15 million of newly issued common units of PVR; $5 million in cash payable on December 31, 2009.
The contingent payments of $30 million and $25 million, payable at Penn Virginia Resource’s (PVR’s) election in cash or common units of PVR, each of which payments will be triggered if revenues from a defined geographic area in which a subset of the acquired assets are located reaches certain targets by or before June 30, 2013.
Prior to closing, PVR purchased the PVG common units from Penn Virginia. Funding for the cash portion of the acquisition cost, as well as the purchase of PVG units from PVA, was provided by borrowings under PVR’s revolving credit facility.
