CorEnergy lifts revolving facility to $90 million, draws $32 million

By Marisa Wong

Madison, Wis., Nov. 25 – CorEnergy Infrastructure Trust, Inc. amended its revolving credit agreement on Nov. 24 to increase the size of the facility to $90 million, according to an 8-K filing with the Securities and Exchange Commission.

The company simultaneously drew $32 million under the amended credit agreement.

As previously announced, the company will use borrowings, along with proceeds from a public offering of common stock, to finance its acquisition of all interests in MoGas Pipeline, LLC and United Property Systems, LLC.

The remaining portion of the credit facility is to be used to fund general working capital needs and, if necessary, to provide short-term financing for the acquisition of additional real property assets.

The credit facility matures on Nov. 24, 2018.

For the first six months, loans will bear interest at Libor plus 400 basis points. Beginning June 24, 2015, loans will bear interest at Libor plus a spread of 275 bps to 350 bps. The applicable spread is based on the company’s total recourse leverage ratio.

The amended credit agreement contains some financial covenants including the maintenance of certain financial ratios and minimum net worth requirements.

CorEnergy originally entered into the credit agreement on Sept. 26 for a $30 million revolving credit facility with Regions Bank as administrative agent.

The energy infrastructure asset financing company is based in Leawood, Kan.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.