Energen gets $1.25 billion revolver; Alagasco closes $100 million loan

By Susanna Moon

Chicago, Oct. 31 - Energen Corp. refinanced its loans with a $1.25 billion five-year senior unsecured revolving credit facility at Libor plus 117.5 basis points.

The Libor spread ranges from 79.5 bps to 145 bps based on the company's credit ratings.

The company and its wholly owned subsidiary, Energen Resources Corp., closed the facility on Tuesday with Bank of America Merrill Lynch, Wells Fargo Securities LLC, Regions Capital Markets, Compass Bank and U.S. Bank NA as lead arrangers and book managers, according to an 8-K filing with the Securities and Exchange Commission.

Bank of America, NA is the administrative agent, swingline lender and a letter-of-credit issuer. Wells Fargo Bank, NA and Regions Bank are co-syndication agents and letter-of-credit issuers. Compass Bank and U.S. Bank NA are co-documentation agents and letter-of-credit issuers.

The facility replaces an $850 million syndicated senior unsecured credit facility provided on Oct. 29, 2010.

The facility may be upsized to $1.5 billion with lender commitments.

Proceeds will be used for working capital, capital expenditures including acquisitions, general corporate purposes and repayment of debt.

There is a $200 million sublimit for letters of credit and a $100 million sublimit for swingline loans.

At closing, the one-month Libor rate was 1.387%, and the daily Libor rate was 1.387%.

Alagasco facility

In addition, Energen operating unit Alabama Gas Corp. (Alagasco) entered into a $100 million five-year syndicated senior unsecured credit facility Tuesday with Bank of America Merrill Lynch, Wells Fargo Securities LLC, Regions Capital Markets, a division of Regions Bank, Compass Bank and U.S. Bank NA as lead arrangers and book managers.

Interest on the loans is initially Libor plus 90 bps. The spread ranges from 79.5 bps to 145 bps based on the company's credit ratings.

Bank of America, NA is the administrative agent, swingline lender and a letter-of-credit issuer; Wells Fargo Bank, NA and Regions Bank are co-syndication agents and letter-of-credit issuers. Compass Bank and U.S. Bank NA are co-documentation agents and letter-of-credit issuers.

The facility may be increased to $200 million and replaces a $150 million syndicated senior unsecured credit facility provided on Oct. 29, 2010.

Proceeds will be used for working capital, capital expenditures including acquisitions, general corporate purposes and repayment of debt.

There is a $25 million sublimit for letters of credit and a $25 million sublimit for swingline loans.

At closing, the one-month Libor rate was 1.112%, and the daily Libor rate was 1.112%.

Energen is an oil and gas exploration and production company is based in Birmingham, Ala.

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