LRR amends facility to cut interest, increase size to $750 million

By Jennifer Chiou

New York, Oct. 6 – LRR Energy, LP entered into an amendment to its credit agreement with LRE Operating, LLC as borrower and Wells Fargo Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The amendment, among other things, reduced the interest rate to Libor plus 150 basis points to 250 bps, extended the maturity date to Oct. 1, 2019, increased the maximum credit amount to $750 million and lifted the borrowing base to $260 million.

On Oct. 1, the company also entered into an amendment to its second-lien credit agreement with Wells Fargo Energy Capital, Inc. as administrative agent, changing the term loan agreement to exclude certain sales of common units representing limited partner interests in the partnership made on and after Oct. 1 and on and before March 31 from compliance with the mandatory prepayment provision under the agreement that requires LRR Energy to use 50% of the net cash proceeds from any equity offering to repay borrowings outstanding under the term loan agreement.

The amendment also extended the maturity date of the term loan agreement to April 1, 2020.

LRR Energy is a Houston-based limited partnership formed by affiliates of Lime Rock Resources to operate, acquire, exploit and develop producing oil and natural gas properties in North America.

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