Synergy Resources makes changes to revolver’s borrowing base, covenant

By Angela McDaniels

Tacoma, Wash., June 8 – Synergy Resources Corp. said it amended its revolving line of credit agreement on June 2 to decrease the borrowing base to $175 million and to replace the covenant requiring maintenance of a minimum current ratio with a covenant requiring the maintenance of a minimum liquidity amount of $25 million, among other changes.

The maximum loan commitment by the banks remains $500 million, and the maturity date remains Dec. 15, 2019, according to an 8-K filing with the Securities and Exchange Commission.

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.

SunTrust Bank is the joint lead arranger/administrative agent, and KeyBank, NA is the joint lead arranger/syndication agent.

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

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