Caza Oil subsidiary enters into up to $100 million five-year revolver

By Tali Rackner

Norfolk, Va., Jan. 25 – Caza Oil & Gas, Inc. wholly owned subsidiary Caza Petroleum, Inc. entered into an up to $100 million five-year senior secured reserve-based revolving credit facility with JPMorgan Chase Bank, NA as administrative agent, according to a press release.

J.P. Morgan Securities LLC is the lead arranger and bookrunner.

The facility has an initial borrowing base of $15 million and includes a sub-facility for the issuance of letters of credit, up to a maximum aggregate face amount of 10% of the borrowing base in effect.

Interest is Libor plus 200 basis points to 300 bps. The commitment fee is 50 bps, based on the unused portion.

The facility matures on Jan. 21, 2021.

Proceeds will be used for the payment of transaction fees and expenses in connection with the closing of the credit facility and funding the working capital, capital expenditures and other general corporate purposes of Caza Petroleum and Caza Operating, LLC.

Financial covenants require Caza to maintain a consolidated maximum funded debt to EBITDAX ratio of 4 times and a minimum current assets to current liabilities ratio of 1 time.

Based in the Woodlands, Texas, Caza is a petroleum and natural gas exploration company.

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