Kimbell Royalty increases credit facility commitments to $200 million

By Sarah Lizee

Olympia, Wash., July 18 – Kimbell Royalty Partners, LP amended its existing credit agreement with Frost Bank as administrative agent on July 12 to increase commitments to $200 million from $50 million, according to an 8-K filing with the Securities and Exchange Commission.

The amendment was made in connection with the company’s acquisition of some subsidiaries owned by Haymaker Minerals & Royalties, LLC.

Under the amendment, availability under the facility will equal the lesser of the total maximum commitments of the lenders and the borrowing base. The initial borrowing base was set at $200 million.

Commitments under the facility may be increased to $500 million.

The amendment also provides for the addition of the subsidiaries Kimbell acquired in the acquisition, as well as Kimbell Royalty Operating, LLC, as guarantors.

Additionally, the amendment provides for a decrease in the applicable margin, which varies based on the level of borrowing base usage, by 25 basis points. The margin over Libor now ranges from 200 bps to 300 bps.

The unused commitment fee is 50 bps.

Frost Bank, Wells Fargo Securities, LLC and Credit Suisse Loan Funding, LLC are joint lead arrangers. Wells Fargo Bank, NA and Credit Suisse Loan Funding, LLC are co-syndication agents.

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

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