WPX Energy increases and extends credit agreement, reduces pricing

By Sarah Lizee

Olympia, Wash., April 20 – WPX Energy, Inc. amended its credit agreement with Wells Fargo Bank, NA as administrative agent on Tuesday to increase the credit amount to $3 billion, the borrowing base to $1.8 billion and the total elected commitments to $1.5 billion, according to an 8-K filing with the Securities and Exchange Commission.

Additionally, the maturity date was extended to April 17, 2023, subject to a springing maturity on Oct. 15, 2021 to the extent the difference on that date between the amount of total commitments available under the credit agreement plus unrestricted cash or cash equivalents and the outstanding principal amounts owed under the company’s 2022 senior notes is less than $500 million.

Also, interest was reduced to Libor plus 125 basis points to 225 bps per annum during the collateral trigger period, based on use percentage.

Outside of a collateral trigger period, the applicable margin over Libor ranges from 125 bps to 150 per annum, based on the company’s debt rating.

Tulsa, Okla.-based WPX is a natural gas and oil exploration and production company.

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