Quest Cherokee amends loan, raising pricing and shortening tenor

By Sara Rosenberg

New York, April 23 - Quest Cherokee LLC amended its credit facility, increasing pricing by 100 basis points and shortening the maturity date by two years to Nov. 15, 2010, according to an 8-K filed with the Securities and Exchange Commission Wednesday.

Pricing on the loan can now range from Libor plus 225 bps to 287.5 bps, depending on use.

Royal Bank of Canada, the administrative agent on the deal, elected to exercise its market flex rights and modify the terms of the credit facility after it was unable to sell down its commitment to a desired hold amount.

The exercise of the market flex should increase the attractiveness of the facility to other lenders and, therefore, increase the likelihood of a successful syndication, the filing said.

The amendment also eliminated the $100 million accordion feature under the revolver.

The amendment was entered into on April 17 but is effective as of April 15.

Quest Cherokee is an Oklahoma City-based provider of oil and natural gas drilling services.

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