Midstates Petroleum amends loan to up pricing, allow for bridge loan

By Marisa Wong

Madison, Wis., April 3 - Midstates Petroleum Co., Inc. entered into a fifth amendment to its existing second amended and restated credit agreement dated June 8, 2012 with SunTrust Bank as administrative agent to permit its recently completed $125 million bridge loan, according to an 8-K filing with the Securities and Exchange Commission.

The amendment also affirms the current borrowing base under the credit facility and provides for a possible decrease of the borrowing base to $475 million in some cases.

Additionally, the company amended provisions of the credit facility to, among other things:

• Release Midstates Petroleum Co. LLC's Louisiana assets from liens securing the credit facility;

• Increase the applicable margin for Libor loans to a range of 200 basis points to 300 bps from a range of 175 bps to 275 bps, depending on borrowing base utilization;

• Amend the leverage ratio to be 4.75 to 1.00 for the quarter ending March 31, 4.50 to 1.00 for the quarter ending June 30, 4.25 to 1.00 for the quarters ending Sept. 30 and Dec. 31, 2014 and 4.00 to 1.00 for each quarter after that, provided that the leverage ratio will be increased by 0.50 for the quarter of, and the two quarters following, completion of Midstates' sale of its ownership interest in developed and undeveloped acreage in the Pine Prairie field area of Evangeline Parish, La., for consideration of at least $100 million; and

• Allow for the bridge loan to be secured by a second lien on Midstates Petroleum Co. LLC's Mississippi assets.

As consideration for the participating lenders' consent to the amendment, the company paid a 0.1% amendment fee on the $475 million borrowing base.

Houston-based Midstates Petroleum is an independent oil and gas exploration and production company.

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