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HighPeak Energy ups facility commitments and borrowing base
By Mary-Katherine Stinson
Lexington, Ky., Oct. 18 – HighPeak Energy, Inc. entered a fifth amendment to its credit facility on Oct. 14, according to an 8-K filing with the Securities and Exchange Commission.
The amendment increased the facility’s elected commitments to $525 million and the borrowing base to $550 million.
The amendment also requires an additional borrowing base redetermination on or about Dec. 1 and modifies the permitted dividends and distributions conditions to a minimum availability under the credit facility of 25%, lowered from 30% before the amendment went into effect.
Wells Fargo Bank, NA replaced Fifth Third Bank, NA as the administrative agent.
In addition, in connection with the amendment, to the extent the company incurs any additional specified unsecured senior, senior subordinated or subordinated future debt between the fifth amendment effective date of Oct. 14 and June 30, 2023, the company’s obligation to reduce the borrowing base by an amount equal to 25% of the principal amount of such additional future debt will be waived.
The lenders waived two technical events of default, which occurred prior to giving effect to the credit amendment, related to entering into and maintaining certain minimum hedges as of the fiscal quarters ending June 30 and Sept. 30 and complying with the required current ratio as of the fiscal quarter ended Sept. 30.
This amendment amends the company’s credit agreement dated as of Dec. 17, 2020.
Based in Fort Worth, HighPeak Energy is an independent oil and natural gas company engaged in the acquisition, development and production of oil, natural gas and NGL reserves.
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