Cabot Oil & Gas increases revolver to $1.8 billion, extends it to 2020

By Angela McDaniels

Tacoma, Wash., April 23 – Cabot Oil & Gas Corp. amended its credit agreement on April 17 to increase the commitments under the revolving credit facility to $1.8 billion from $1.4 billion and extend the maturity to April 2020 from May 2017, according to an 8-K filing with the Securities and Exchange Commission.

The amendment also changed the mechanism under which interest rate margins are determined for outstanding borrowings, changed the basis on which the applicable commitment fee is determined from time to time, increased the borrowing base to $3.4 billion from $3.1 billion and provides for a $500 million accordion feature.

The interest rate is Libor plus a margin that ranges from 150 basis points to 225 bps. The commitment fee ranges from 30 bps to 50 bps. Both depend on the company’s leverage ratio.

If the company achieves an investment-grade rating from either Moody’s Investors Service or Standard & Poor’s, the margin over Libor will range from 112.5 bps to 175 bps, and the commitment fee will range from 15 bps to 30 bps, both based on the company’s credit rating.

In addition, the amendment added and/or substituted new lenders.

JPMorgan Chase Bank, NA is the administrative agent. Banc of America Securities LLC is the syndication agent. Bank of Montreal is the documentation agent.

Cabot is an oil and natural gas company based in Houston.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.