Memorial Production Partners to draw from revolver to fund acquisition

By Toni Weeks

San Luis Obispo, Calif., July 15 - Memorial Production Partners LP expects to borrow from its $1 billion multi-year revolving credit facility to fund the $606 million acquisition of oil and gas properties in the Permian Basin, East Texas, and the Rockies from Memorial Resource Development LLC and affiliates of Natural Gas Partners, according to a press release.

The facility currently carries a borrowing base of $480 million, but the transaction is expected to result in a "significant" borrowing base increase. Memorial is working with its lenders to complete a redetermination of the borrowing base pro forma for the acquisition, the release said.

The Houston-based limited partnership, which was formed to own and acquire oil and natural gas properties in North America, had $441 million of available borrowing capacity as of July 1.

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