Surge Energy lifts revolver borrowing base, switches benchmark to SOFR

By Marisa Wong

Los Angeles, April 20 – Surge Energy US Holdings Co. announced an increased borrowing base of $1.5 billion and elected commitments of $935 million on its revolving credit facility.

The borrowing base was increased from $1.2 billion, and elected commitments were increased from $860 million, according to a press release.

The increases are in connection with the credit facility’s regularly scheduled semiannual redetermination that recently closed.

As part of the redetermination, the credit facility also switched benchmarks to SOFR from the sunsetting Libor.

As of March 31, the company had about $88 million in cash and $255 million drawn on the credit facility. Pro forma liquidity is roughly $768 million based on March 31 cash on hand and undrawn elected commitments as of the close of the redetermination.

Surge Energy is a Toronto-based junior/intermediate oil and gas company.

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