Parsley Energy subsidiary increases revolver commitments to $1 billion

By Angela McDaniels

Tacoma, Wash., May 1 – Parsley Energy, Inc. subsidiary Parsley Energy, LLC amended its revolving credit facility on Friday to increase the aggregate elected borrowing base commitments to $1 billion from $600 million and the borrowing base to $1.4 billion from $900 million, according to an 8-K filing with the Securities and Exchange Commission.

The amendment added Canadian Imperial Bank of Commerce, New York Branch; Capital One, NA; Citibank, NA; PNC Bank, NA and UBS AG, Stamford Branch as lenders.

The amendment also modified the terms of the credit agreement to

• Remove all anti-cash hoarding provisions;

• Reduce the minimum mortgage and title coverage requirements from 90% to 85% of the total value of each of the borrower’s and its subsidiaries’ proved oil and gas properties and the borrower’s and its subsidiaries’ proved, developed and producing reserves; and

• Delete the applicable margin penalty, which increased the applicable margin by 50 basis points with respect to alternate base rate loans and Eurodollar loans if the consolidated leverage ratio exceeds 3.5 to 1.

Wells Fargo Bank, NA is the administrative agent.

Parsley Energy is an oil and natural gas company based in Austin, Texas.

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