Rosetta Resources boosts borrowing base for revolver to $800 million

By Susanna Moon

Chicago, April 15 - Rosetta Resources Inc. said it boosted the borrowing base under its revolving credit facility to $800 million based on a semiannual borrowing base redetermination, effective Friday.

The company amended its credit agreement last Friday with Wells Fargo Bank, NA as administrative agent, pushing out the maturity to April 12, 2018, according to an 8-K filing with the Securities and Exchange Commission.

Under the new terms, the maximum credit amount under the agreement was upsized to $1.5 billion from $750 million. The borrowing base was increased from $625 million.

The changes also ease restrictions on the company's ability to pay dividends to its equity holders upon acquiring investment-grade unsecured debt ratings from Moody's Investors Service and Standard & Poor's.

The changes reflect the company's proposed May acquisition of Permian Basin assets from Comstock Resources, Inc.

As of Friday, the company had $305 million outstanding under the facility.

Paydown planned

Rosetta also said in a separate press release that it planned to pay down its revolver using proceeds of an underwritten public offering of 7 million common shares.

The company also plans to use proceeds to help fund the acquisition of oil and natural gas assets in the Permian Basin.

Rosetta Resources is a Houston-based independent exploration and production company.

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