Kodiak Oil & Gas' borrowing base reset at $75 million; pricing lowered

By Angela McDaniels

Tacoma, Wash., April 19 - Kodiak Oil & Gas (USA) Inc. said the borrowing base for its $200 million senior secured revolving line of credit facility was increased to $75 million from $50 million on April 13.

According to an 8-K filed with the Securities and Exchange Commission by parent company Kodiak Oil & Gas Corp., the facility was also amended to:

• Decrease the interest rate to adjusted Libor plus 175 basis points to 275 bps, depending on borrowing base usage. The margin was previously 225 bps to 325 bps;

• Decrease the borrowing base increase fee to 50 bps from 100 bps; and

• Reduce the commitment fee to a sliding scale of 37.5 bps to 50 bps. It was previously a flat fee of 50 bps.

The borrowing base is redetermined semiannually.

"The increase in our borrowing base is reflective of our continued success in the Williston Basin," chief financial officer James Henderson said in a company news release. "Our cash balances, operating cash flow and expanded revolving line of credit provide the company with liquidity and balance sheet flexibility as we execute on growth-oriented development drilling in 2011 and into 2012."

There are no borrowings outstanding under the facility.

Wells Fargo Bank, NA is the administrative agent.

Kodiak is an oil and gas company based in Denver.

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