Legacy Reserves lender forbearance agreements extended through June 12

By Caroline Salls

Pittsburgh, June 7 – Legacy Reserves Inc. has entered into second forbearance agreements with its lenders under its reserve-based revolving credit facility and with its lenders under its second-lien term loan, which extends the forbearance period through 11:59 p.m. ET on June 12, according to a news release.

The forbearance period was previously scheduled to terminate at 5 p.m. ET on June 7.

Legacy said the lenders have agreed not to exercise any default-related remedies related to the May 31 maturity of the revolver and from Legacy not making the interest payments due on June 3 on its outstanding 8% senior notes due 2020, 6 5/8% senior notes due 2021 and 8% convertible senior notes due 2023.

Additionally, the second-lien lenders have agreed to further extend the waiver of the covenant that required Legacy to deliver audited financial statements without a going-concern or like qualification or exception.

The company said it has retained Perella Weinberg Partners and its affiliate, Tudor Pickering Holt & Co., as financial adviser and Sidley Austin LLP as legal adviser to assist Legacy in evaluating and exploring potential strategic alternatives.

Legacy Reserves is a Midland, Tex.-based company focused on the acquisition and development of oil and natural gas properties.

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