Matador Resources unit lifts revolver borrowing base to $385 million

By Toni Weeks

San Luis Obispo, Calif, March 12 - Matador Resources Co. subsidiary MRC Energy Co. entered into an amendment to its revolving credit agreement on Wednesday, according to an 8-K filing with the Securities and Exchange Commission. Matador is the guarantor.

The amendment increases the borrowing base to $385 million from $350 million and increases the conforming borrowing base to $310 million from $275 million.

The amendment also adds Wells Fargo Bank, NA to the lending group, which also includes Royal Bank of Canada as administrative agent, Comerica Bank, Citibank, NA, Bank of Nova Scotia, SunTrust Bank, BMO Harris Financing, Inc. and IbereaBank. Capital One, NA is no longer part of the lending group.

In addition, the amendment eliminates the current ratio covenant, increases the debt-to-EBITDA ratio covenant to 4.25 or less, reduces the interest rate based on outstanding borrowings by 25 basis points across the borrowing grid and provides that the borrowing base will be automatically reduced to the conforming borrowing base at the earlier of June 30, 2015 or concurrent with the company's issuance of senior unsecured notes in an amount greater than or equal to $10 million.

The Dallas-based independent energy company engages in the exploration, development, production and acquisition of oil and natural gas resources.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.