Cimarex gets $800 million five-year facility at Libor plus 175-250 bps

By Susanna Moon

Chicago, July 18 - Cimarex Energy Co. entered into an $800 million five-year senior unsecured credit facility last Thursday with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

Interest on the loans will be Libor plus 175 basis points to 250 bps, and there is an unused fee of 37.5 bps to 50 bps, both based on leverage.

The borrowing base is initially $2 billion and will be reset each April, beginning in 2012. In addition to the scheduled reset dates, each of the lenders and Cimarex may request one additional reset date during any 12-month period, the filing noted.

The agreement expires on July 14, 2016.

Under the covenants, the company must maintain a leverage ratio of total debt to earnings, before EBITDA of no more than 3.5 times and a minimum ratio of consolidated current assets, including the unused amount of the total commitments, to consolidated current liabilities of 1 times.

Wells Fargo Bank, NA and Deutsche Bank Securities, Inc. are the co-syndication agents. Union Bank, NA and BBVA Compass Bank are co-documentation agents.

J.P. Morgan Securities LLC and Wells Fargo Securities, LLC are joint lead arrangers.

Cimarex is a Denver-based oil and gas exploration and production company.

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