Northern Oil amends covenants, cuts borrowing base to $325 million

By Wendy Van Sickle

Columbus, Ohio, May 8 – Northern Oil and Gas, Inc. amended its third amended and restated credit agreement dated Feb. 28, 2012 to reduce the borrowing base, increase pricing and modify some other provisions, according to an 8-K filed Monday with the Securities and Exchange Commission.

The amendment reduces the borrowing base under the revolving credit facility to $325 million from $350 million. As of May 4, the company had $134 million of outstanding borrowings under the facility, leaving $191 million of remaining availability.

The amendment counts as the company’s semiannual borrowing base redetermination. The next redetermination of the borrowing base is scheduled for Oct. 1.

The company also amended the credit agreement to adjust the minimum ratio of EBITDAX to interest expense that the company is required to maintain and to further restrict Northern Oil’s ability to make restricted payments or redeem debt.

The amendment was completed on May 4.

Royal Bank of Canada is the administrative agent.

Northern Oil is an exploration and production company based in Wayzata, Minn.

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