Comstock Resources gets commitments for $700 million five-year revolver

By Tali Rackner

Minneapolis, July 11 – Comstock Resources Inc. obtained commitments for a new five-year reserve-based revolving credit facility from a syndicate of 13 banks, according to a press release.

The new facility has an initial borrowing base of $700 million, which will be redetermined on a semiannual basis.

Borrowings will bear interest at Libor plus 200 basis points to 300 bps, depending on usage.

The commitment fee will be 37.5 bps to 50 bps on the unused borrowing base.

Bank of Montreal is the administrative agent. BMO Capital Markets Corp. is the lead arranger.

The new facility will become effective upon the closing of the contribution of some oil and gas assets by Arkoma Drilling, LP and Williston Drilling, LP, entities owned by Jerry Jones and his family, under the May 9 contribution agreement between Comstock and those entities, the filing said. The issuance of Comstock common stock in connection with the Jones contribution is being submitted to the company's stockholders for approval at its upcoming annual meeting to be held on Aug. 10.

Comstock is a Frisco, Texas-based company engaged in oil and gas acquisitions, exploration and development primarily in Texas and Louisiana.

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