Atlas Resource gets $138 million amended, restated facility due 2016

By Marisa Wong

Madison, Wis., March 7 - Atlas Energy, LP subsidiary Atlas Resource Partners, LP entered into a credit agreement on March 5 that amends and restates its credit agreement dated March 22, 2011, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

The amended credit agreement provides for a facility due March 2016 with an initial borrowing base of $138 million. The agreement also provides for the issuance of up to $20 million of letters of credit, which would reduce the company's borrowing capacity.

The borrowing base will be re-determined semiannually beginning on May 1. The borrowing base will be automatically reduced upon the occurrence of certain events, including the issuance of senior notes and certain sales of oil and gas properties.

Interest is equal to Libor plus 200 basis points to 325 bps, depending on usage.

Atlas Resource is required to pay a fee of 50 bps per year on the unused portion of the borrowing base.

Borrowings may be used for working capital and general corporate purposes.

The credit agreement contains covenants that require Atlas Resource to maintain the following financial ratios:

• Total funded debt to four quarters of EBITDA not greater than 3.75 to 1.00 as of the last day of any fiscal quarter;

• Current assets to current liabilities not less than 1.00 to 1.00 as of the last day of any quarter; and

• Four quarters of EBITDA to consolidated interest expense not less than 2.50 to 1.00 as of the last day of any quarter.

Wells Fargo Bank, NA is the administrative agent.

Atlas Energy, formerly known as Atlas Pipeline Holdings, LP, is a Pittsburgh-based developer and producer of natural gas and oil.

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