UPDATE 2-Venoco CEO gets financing letter for buyout deal

Wed Jun 20, 2012 8:37am EDT

June 20 (Reuters) - Natural gas-focused Venoco Inc said Chief Executive Timothy Marquez has received a "highly confident" letter regarding a portion of the financing necessary to take the company private.

The board last week extended to July 20 the deadline for Marquez to secure funding for the deal.

Venoco in January agreed to be acquired by Marquez for $12.50 per share in a deal valued at $1.5 billion, including debt.

Marquez, along with affiliated trusts and foundations, owned about 50.3 percent of Venoco stock as of Jan. 16.

Marquez first proposed taking the company private in August last year, as the debt-heavy company struggled to raise funds to meet higher capital expenditures.

Venoco responded by setting up a special committee to review its options, which failed to find better offers for the natural gas-focused company.

Venoco shares closed at $11 on Tuesday on the New York Stock Exchange.

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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