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Lilis obtains further extension of borrowing base deficiency payment
By Sarah Lizee
Olympia, Wash., Feb. 14 – Lilis Energy, Inc. again amended its senior secured revolving credit agreement with BMO Harris Bank NA as administrative agent to delay payments of its borrowing base deficiency, according to a press release.
As previously reported, as a result of the Jan. 17 redetermination of the borrowing base, a borrowing base deficiency in the amount of $25 million currently exists under the revolver.
The borrowing base deficiency constitutes the difference between the principal amount of borrowings currently outstanding under the revolver, which is $115 million, and the borrowing base, which is $90 million.
The company is required to repay the amount of the borrowing base deficiency in four $6.25 million installments.
Prior to the first amendment, the installment payments were due to be made on Feb. 7, Feb. 14, March 16 and April 14. The first amendment extended the first and second installment dates to Feb. 18. The latest amendment extended the first and second installment dates to Feb. 28.
The third and fourth installment dates are still unchanged.
The company added that on Feb. 12 it executed a purchase and sale agreement for the sale of about 1,185 undeveloped net acres, being its northernmost acreage in Lea County, N.M., for expected net cash proceeds of about $24.9 million. Proceeds will be used to fund a substantial portion of the borrowing base deficiency with the balance to be used for general corporate purposes.
If the company is unable to repay the borrowing base deficiency as and when required, an event of default would occur under the agreement.
Lilis is a Houston-based independent oil and gas exploration and production company.
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