Earthstone Energy gets $500 million five-year restated credit facility

By Marisa Wong

Morgantown, W.Va., May 15 – Earthstone Energy, Inc.’s subsidiary, Earthstone Energy Holdings, LLC, entered into a $500 million credit agreement on May 9, according to an 8-K filed Monday with the Securities and Exchange Commission.

BOKF, NA dba Bank Of Texas is agent and lead arranger, with Wells Fargo Bank, NA as syndication agent.

The credit agreement amends and restates Earthstone’s credit agreement dated Dec. 19, 2014.

The initial borrowing base of the new credit facility is $150 million, subject to semiannual redetermination.

Borrowings bear interest at Libor plus 225 basis points to 325 bps, depending on the amount borrowed under the facility. There is also a commitment fee of 50 bps for unused commitments.

The facility matures on May 9, 2022.

The credit agreement requires the subsidiary to maintain the following financial covenants: a current ratio of not less than 1.0 to 1.0 and a leverage ratio of not greater than 4.0 to 1.0.

Earthstone is an oil and gas company based in The Woodlands, Texas.

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