Antero Resources ups borrowing base to $4 billion, adds five banks

By Marisa Wong

Madison, Wis., Oct. 22 – Antero Resources Corp. amended its fourth amended and restated credit agreement on Oct. 16 to increase the borrowing base to $4 billion from $3 billion and aggregate lender commitments to $3 billion from $2.5 billion, according to an 8-K filing with the Securities and Exchange Commission.

The increased commitment amount includes $500 million associated with a midstream facility, also amended on Oct. 16 to reallocate lender commitments.

The bank syndicate, co-led by JPMorgan Chase Bank, NA and Wells Fargo Bank, NA, was expanded to add five banks, increasing the number of participants to 26 banks, according to a press release.

As of June 30, and taking into account this borrowing base and lender commitment increase, Antero had $1.2 billion drawn under the credit facility and $237 million in letters of credit outstanding, resulting in $1.5 billion of available liquidity and over $2.5 billion of unused borrowing base capacity.

The next redetermination of the borrowing base is scheduled to occur in the second quarter of 2015.

According to the 8-K, the amendment also removes a provision that causes the borrowing base to be reduced by $250 for each $1,000 principal amount of senior notes issued by any credit party under the credit agreement.

In addition, the amendment extends the maximum expiry date of any hedging arrangements entered into by any credit party to Dec. 31, 2020 from Dec. 31, 2018.

The oil and gas company is based in Denver.

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