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Mid-Con Energy closes $250 million five-year reserve-based revolver
By Susanna Moon
Chicago, Dec. 23 - Mid-Con Energy Partners, LP closed a $250 million five-year senior secured revolving credit facility with an initial borrowing base of $75 million, according to an 8-K filing with the Securities and Exchange Commission.
Interest on the loans will be Libor plus 175 basis points to 275 bps, based on usage. The commitment fee is 37.5 bps to 50 bps.
The company entered into a reserve-based credit agreement Tuesday with Royal Bank of Canada as administrative agent and collateral agent. RBC Capital Markets is the lead arranger and bookrunner.
The borrowing base will be based on the estimated value of the partnership and its subsidiaries' oil and natural gas properties and commodity derivative contracts, determined semiannually and at times more frequently.
Loans under the agreement are secured by liens on at least 80% of the value of the partnership and its subsidiaries' oil and natural gas properties and all of the partnership's equity interests in Mid-Con Energy Properties and all of their assets including personal property.
The terms require the companies to maintain a leverage ratio of consolidated funded debt to consolidated EBITDAX of no more than 4 times and a ratio of consolidated current assets to consolidated current liabilities of at least 1 times.
The loan agreement is in connection with the Dallas-based energy company's initial public offering of 5.4 million common units representing limited partner interests at $18.00 per unit.
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