GST????????

[bigtex]

are the banks wanting the pref divy to be suspended
????/



aiver and Amendment to Second Amended and Restated Credit Agreement

Gastar Exploration Inc. (the "Company") is currently in discussions with its bank lending group to amend its Second Amended and Restated Credit Agreement, dated June 7, 2013 (as amended immediately prior to the effective date of Amendment No. 7 described below, the "Credit Agreement"), to provide greater flexibility in future periods with respect to financial covenants. Based on preliminary discussions with its administrative agent bank and subject to further discussions with that agent bank and other lenders after the



availability of preliminary year-end 2015 financial and operational information, the Company believes that it will be able to reach a satisfactory agreement with its lenders to amend such financial covenants on or before March 10, 2016 in a manner such that the Company will reasonably expect to comply with its financial covenants over the next twelve months under its current commodity price outlook. Any such amendment, however, will be subject to the receipt of required approvals from the lenders party to such Credit Agreement, and there can be no assurance that the Company will receive the necessary approvals for any such amendments.

Pending the conclusion of these continued discussions with the administrative agent bank and other lenders, on January 29, 2016, the Company entered into Limited Waiver and Amendment No. 7 to Second Amended and Restated Credit Agreement, among the Company, as Borrower, Wells Fargo Bank, National Association, as Administrative Agent, Collateral Agent, Swing Line Lender and Issuing Lender, and the other Lenders party thereto constituting the Required Lenders ("Amendment No. 7"). Pursuant to Amendment No. 7, the Company obtained
(i) a waiver until March 10, 2016 of any potential defaults at December 31, 2015 of its Leverage Ratio and Senior Secured Leverage Ratio under the Credit Agreement and (ii) a permanent waiver of any defaults of the restricted payment covenant under the Credit Agreement resulting from (a) cash distributions paid on December 31, 2015 in respect of its 8.625% Series A Cumulative Preferred Stock (the "Series A Preferred Stock") and its 10.75% Series B Cumulative Preferred Stock (the "Series B Preferred Stock") and (b) the issuance on January 28, 2016, as a dividend on the Company' common stock, of the right to purchase Series C Junior Participating Preferred Stock pursuant to the Company's Rights Agreement dated as of January 18, 2016 as part of the Company's previously disclosed tax benefits preservation plan. The Credit Agreement was also amended to permit the Company to make dividends and distributions of preferred equity interests or rights to purchase certain preferred equity interests. The entry into Amendment No. 7 permitted the Company to pay monthly cash dividends on its Series A Preferred Stock and its Series B Preferred Stock on February 1, 2016.

A copy of Amendment No. 7 is attached as Exhibit 10.1 to this Form 8-K and is hereby filed. The description of Amendment No. 7 in this Form 8-K is a summary and is qualified in its entirety by reference to the complete text of such amendment.

[bobs]

I guess this is perhaps the reason for the recent weakness compared to most of the other small cap energy stocks.

[setliff]

also this downgrade yesterday

http://finance.yahoo.com/q/ud?s=GST

[rtaber]

wHAT IS GOING ON????

[mkarpoff]

I just spoke with a very helpful IR person. The divs are not in any immediate danger of being suspended. The company took money on their line of credit to use for the Stack play, etc. That money is in the bank, still unused. However, in order to take out as much as they wished, they had to get the bank's "waiver" in order to keep paying the divs. They got that waiver. They closed the data room, which was open to any company willing to sign a non-disclosure, but they continue to have discussions with certain companies that have looked at the books. So, all in all, no new news.

[dan_s]

See post under Sweet 16 Tab

[gjames]

Preferreds down big again this morning..................opportunity or trap?

[dan_s]

See post under the Sweet 16 Tab

[k1f]

<<Preferreds down big again this morning..................opportunity or trap?>>

<<Thinly traded stocks (like the preferred shares) can make big moves when some fund needs to sell a block at one time.>>

Also ex-div. (k1f)

[Wade4213]

I'm considering adding to my GST.PB position Am I delusional?

GTW