Kimbell Royalty restates reserve-based revolver with $400 million initial commitment

By Wendy Van Sickle

Columbus, Ohio, June 20 – Kimbell Royalty Partners, LP entered into an amended and restated credit agreement on June 13 with Citibank, NA as administrative agent that provides for an up to $750 million senior secured reserve-based revolver with an initial borrowing base and an initial aggregate elected commitments amount of up to $400 million, according to an 8-K filing with the Securities and Exchange Commission.

The revolver includes a $10 million subfacility for the issuance of letters of credit.

The maturity date is now June 7, 2027.

Borrowings bear interest at SOFR plus a margin that ranges from 275 basis points to 375 bps, based on borrowing base utilization.

There is a commitment fee of 50 bps on the average daily unused portion of the current total commitments.

The company must maintain a debt to EBITDAX ratio of not more than 3.5x and a current assets to current liabilities of not less than 1x.

Citibank is lead arranger and syndication agent.

Banc of America Securities LLC, Frost Bank, Mizuho Bank, Ltd., PNC Capital Markets LLC and Truist Securities, Inc. are joint lead arrangers.

Bank of America, NA, Frost Bank, Mizuho Bank, Ltd., PNC Bank, NA and Truist Bank are co-documentation agents.

Fort Worth-based Kimbell Royalty Partners owns and acquires mineral and royalty interests in oil and natural gas properties.

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