Encana trims revolver to $2.5 billion, extends maturity by two years

By Marisa Wong

Morgantown, W.Va., March 29 – Encana Corp. amended on March 28 its restated credit agreement dated July 16, 2015 with Royal Bank of Canada as agent to reduce the size of the revolving credit facility to $2.5 billion from $3 billion, according to an 8-K filing with the Securities and Exchange Commission.

In addition, Encana amended the credit facility to, among other things, extend the maturity date to July 15, 2022 from July 16, 2020 and update some interest rate definitions.

Also on Wednesday, Encana’s U.S. subsidiary, Alenco Inc., entered into an amendment to its second amended and restated credit agreement dated Oct. 20, 2011.

Alenco amended its credit agreement to appoint JPMorgan Chase Bank, NA as successor administrative agent to existing administrative agent Citibank, NA.

The amendment also extends the maturity date to July 15, 2022 from July 16, 2020, updates interest rate definitions and modifies the ratings-based pricing grid to reduce the applicable margin to a range of 100 basis points to 212.5 bps.

However, the size of the revolver was not amended and remains at $1.5 billion.

Encana is a Calgary, Alta., oil and natural gas company.

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