Alta Mesa restates $1 billion revolver with $350 million initial base

By Wendy Van Sickle

Columbus, Ohio, Feb. 9 – Alta Mesa Holdings, LP entered into a $1 billion five-year amended and restated senior secured revolving credit facility with a $350 million initial borrowing base, according to a press release issued Friday and an 8-K filing with the Securities and Exchange Commission.

Borrowings bear interest at Libor plus a margin ranging from 200 basis points to 300 bps.

The next borrowing base redetermination is scheduled for April 1.

Alta Mesa must comply with a minimum ratio of consolidated current assets to consolidated current liabilities of 1 time and a maximum leverage ratio of 4 times.

Wells Fargo Securities, LLC is the lead arranger and bookrunner. Capital One, NA and Natixis are co-syndication agents. Toronto Dominion (New York) LLC and ING Capital LLC are co-documentation agents.

Proceeds may be used for working capital and general corporate purposes.

The amended and restated credit facility is in connection with Silver Run Acquisition Corp. II’s business combination with Alta Mesa and Kingfisher Midstream, LLC.

Kingfisher is also a party to a $200 million revolver.

ABN AMRO Capital USA LLC is the bookrunner and lead arranger of that credit agreement. East West Bank is the syndication agent. Wells Fargo Bank, NA is the documentation agent.

As of closing of the business combination, neither Alta Mesa nor Kingfisher had any outstanding borrowings or letter-of-credit obligations under their respective credit facilities.

Alta Mesa is an onshore oil and gas company is based in Houston.

Kingfisher was formed by HPS Investment Partners and ARM Energy Holdings, LLC to provide midstream energy services, including crude oil gathering, gas gathering and processing and marketing to producers of natural gas, natural gas liquids, crude oil and condensate.

Silver Run Acquisition Corp. II is an energy-focused special purpose acquisition company formed by Riverstone Holdings LLC for the purpose of entering into a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses.

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