Penn Virginia amends, permitting Chief acquisition and new debt

By Sara Rosenberg

New York, April 27 - Penn Virginia Resource Partners LP amended its revolving credit facility, allowing for the acquisition of Chief Gathering LLC from Chief E&D Holdings LP and for the incurrence of debt prior to completion of the purchase, according to an 8-K filed with the Securities and Exchange Commission on Friday.

The newly allowed debt includes a $220 million unsecured senior bridge facility led by Royal Bank of Canada.

Also, after the acquisition is completed, the maximum leverage ratio, maximum secured leverage ratio and pricing will be changed.

The leverage ratio will become 6.50 to 1.00 from June 30 through Dec. 31 and 5.25 to 1.00 thereafter, and the secured leverage ratio will become 4.00 to 1.00.

Meanwhile, pricing on the revolver will be revised to add two new tiers that apply when leverage is greater than 5.00 to 1.00, so that the spread can range from Libor plus 175 basis points to 350 bps, versus from Libor plus 175 bps to 275 bps prior to the amendment.

The amendment was completed on April 23.

PNC Bank is the administrative agent on the deal.

Penn Virginia is a Radnor, Pa.-based owner and manager of coal and natural resource properties, and midstream natural gas gathering and processing businesses.

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