Midstates Petroleum amends revolver, confirms $525 million base amount

By Susanna Moon

Chicago, March 25 – Midstates Petroleum Co., Inc. and Midstates Petroleum Co. LLC, a wholly owned subsidiary, amended their credit agreement on Tuesday with SunTrust Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

Midstates’ borrowing base will remain at its current size of $525 million as part of the regular semiannual borrowing base redetermination under the agreement.

The amendment also confirmed that the borrowing base will not be reduced as a result of the sale of some of the company’s oil and gas properties in Beauregard and Calcasieu Parishes, La., expected to close by April 30.

The company amended the required ratio of net consolidated debt to EBITDA under the agreement for each of the fiscal quarters in 2015 to 4.5 times from 4 times.

Also, the amendment revises the mortgage requirements under the agreement to provide for an increase to 90% from 80% in the percentage of properties included in the borrowing base that are required to be subject to mortgages for the benefit of the lenders.

“The combination of our strong 2015 hedge position, continued focus on aggressively managing our level of capital expenditures and the proceeds from the pending sale of our Dequincy assets will give us time to thoughtfully proceed with our review of options to further enhance our liquidity and provide financial flexibility,” Jake Brace, president and chief executive officer, said in a company press release.

Midstates is a Tulsa-based oil and gas company.

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