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Stone Energy trims $700 million revolver base grid by 25 bps via BofA
By Susanna Moon
Chicago, April 27 - Stone Energy Corp. amended its $700 million revolving credit facility, lowering the borrowing base grid by 25 basis points over Libor on advances and base rate advances, according to an 8-K filed with the Securities and Exchange Commission on Friday.
The company amended its revolver on April 26 with a syndicate of banks led by Bank of America, NA.
The facility matures on Sept. 15, 2014 or on April 26, 2015 if the notes issued under Stone's 2004 indenture are retired by April 15, 2014.
Stone's initial borrowing base under the credit facility has been set at $400 million. The borrowing base will be reset semiannually based on the estimated value of the company's oil and gas properties. Stone and the lenders may have the borrowing base reset up to two additional times in a calendar year at any time.
As of April 26, there were no outstanding borrowings under the facility, and $61.1 million of letters of credit had been issued under the facility, leaving availability of $338.9 million.
The facility must be guaranteed by all of the material direct and indirect subsidiaries of Stone. As of April 26, the facility is guaranteed by Stone Energy Offshore, LLC, a Delaware limited liability company and a wholly owned subsidiary of Stone.
Stone and Stone Offshore are required to mortgage - and grant a security interest in - their oil and gas reserves representing at least 80% of the discounted present value of the future net cash flows from their oil and gas reserves reviewed in determining the borrowing base.
The bank group also includes BNP Paribas, Natixis and Bank of Nova Scotia as syndication agents; Capital One, NA and Toronto Dominion (New York) LLC as documentation agents; and Barclays Bank plc, Regions Bank, U.S. Bank NA, IberiaBank, Whitney National Bank and Sumitomo Mitsui Banking Corp. as participating banks.
Stone Energy is a Lafayette, La.-based oil and natural gas company.
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