SilverBow upsizes revolver commitment to $1.2 billion

By Wendy Van Sickle

Columbus, Ohio, Dec. 1 – SilverBow Resources, Inc. entered into an amendment Thursday to its first-lien credit agreement with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The amendment increases both the revolver’s elected commitment and borrowing base to $1.2 billion from $775 million apiece and gives consent to the company’s issuance of up to $350 million of additional second-lien notes, resulting in an aggregate principal amount of outstanding second-lien notes not to exceed $500 million.

JPMorgan Chase, BofA Securities, Inc., Barclays Bank plc, Canadian Imperial Bank of Commerce, New York Branch, Citigroup Global Markets Inc., Capital One, NA, KeyBanc Capital Markets Inc., Mizuho Bank, Ltd., PNC Capital Markets LLC, Truist Securities and Wells Fargo Securities, LLC as joint lead arrangers and joint bookrunners.

On the amendment effective date, SiverBow and its operating subsidiary, SilverBow Resources Operating, LLC, closed the previously announced acquisition of Chesapeake Energy Corp.’s oil and gas assets in South Texas for a total consideration of about $700 million, comprising $650 million paid in cash at closing and an additional $50 million deferred cash payment due on the first anniversary of the closing. The consideration was funded with cash on hand, borrowings under the credit agreement and proceeds from the sale of additional second-lien notes. The sellers may also receive up to $50 million in additional contingent cash consideration based on future commodity prices.

SilverBow is a Houston-based oil and gas exploration and production company.

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