Cabot Oil & Gas amends revolver to extend maturity, reduce rate, add upsize ability

By Sara Rosenberg

New York, Dec. 16 - Cabot Oil & Gas Corp. amended its $250 million revolving credit facility, extending the term to Dec. 10, 2009 from Oct. 27, 2006, reducing the interest rate, and adding an accordion feature that would allow the company to increase the revolver size to $350 million, according to an 8-K filed with the Securities and Exchange Commission Thursday.

In addition, under the amendment, the minimum asset coverage ratio was eliminated.

Under the amendment the interest rate can range from Libor plus 100 to 175 basis points compared to previous pricing of Libor plus 125 to 175 basis points (see tables 1 and 2), the filing said.

Fleet National Bank is the administrative agent on the deal.

The amendment became effective on Dec. 10.

Cabot Oil & Gas is a Houston-based oil and gas company.

Table 1: Amended Applicable Margin

Debt Percentage Margin

Lower than 50% 1.00%

50% or higher, but not exceeding 75% 1.25%

Higher than 75%, but not exceeding 90% 1.50%

Higher than 90% 1.75%

Table 2: Original Applicable Margin

Debt Percentage Margin

Lower than 60% 1.25%

60% - 80% 1.50%

Higher than 90% 1.75%

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