PDC Energy extends credit facility to 2023, improves interest rates

By Wendy Van Sickle

Columbus, Ohio, May 25 – PDC Energy, Inc. amended and restated its credit agreement originally dated May 21, 2013 on Wednesday to provide for a maximum credit amount of $2.5 billion, an initial elected commitment amount of $700 million and an initial borrowing base of $1.3 billion, according to an 8-K filed with the Securities and Exchange Commission.

Additionally, the credit agreement was extended to May 23, 2023 from May 21, 2020.

Also, the company reported its covenant flexibility was improved and its interest rates were reduced.

Borrowings now bear interest at Libor plus a margin ranging from 125 basis points to 225 bps, and the commitment fee is either 37.5 bps or 50 bps, both depending on utilization.

The credit facility includes a $25 million sublimit for swingline loans.

JPMorgan Chase Bank, NA is the bookrunner and administrative agent and a joint lead arranger along with Wells Fargo Securities, LLC.

Wells Fargo Bank, NA is the syndication agent. Bank of America, NA and Bank of Montreal are the documentation agents.

PDC is a Denver-based independent exploration and production company.

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