Azure Midstream lenders extend waiver under revolver through January

By Susanna Moon

Chicago, Jan. 18 – Azure Midstream Partners, LP’s lenders extended the waiver of covenant defaults under its revolving credit facility until Jan. 30, according to an 8-K filing with the Securities and Exchange Commission.

The terms of the extension require the company to enter into an agreement for the sale of assets or the equity of the company and its subsidiaries no later than Jan. 30.

The company received the extension on Nov. 30 and previously extended the waiver to Dec. 18 from Nov. 30. The company secured the most recent extension on Jan. 13.

Borrowing capacity under the credit agreement continues to be $173.7 million.

The company does not expect to remain in compliance with all of the restrictive covenants contained in the credit agreement throughout 2016 unless those requirements are waived or amended, and it does not have enough liquidity to repay all of its outstanding debt in full if such debt were accelerated, according to its 10-Q report for the third quarter filed Nov. 2.

Wells Fargo Bank, NA is the administrative agent.

Azure is a Dallas-based midstream energy company.

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