Synergy Resources details amended $300 million credit facility

By Jennifer Chiou

New York, Dec. 31 - Synergy Resources Corp. disclosed specifics on its recently upsized $300 million credit facility led by Community Banks of Colorado in an 8-K filing with the Securities and Exchange Commission.

As reported, the borrowing base was lifted to $90 million. Synergy said earlier in the month that it has $37 million borrowed on the facility as of the end of November with a current interest rate of 2.67%.

The 8-K added that the borrowing base can increase or decrease based upon the value of the collateral securing any amounts borrowed under the line of credit. The value of the collateral will be derived from the estimated future cash flows of Synergy's proved oil and gas reserves, discounted by 10%.

Proceeds will be used to develop oil and gas properties, acquire new oil and gas properties, and for working capital and other general corporate purposes.

Borrowings will come due on Nov. 28, 2016. They will bear interest at Libor plus 250 basis points to 325 bps.

Synergy is a domestic oil and natural gas exploration and production company based in Platteville, Colo.

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