Chaparral ups borrowing base, lowers pricing, extends loan maturity

By Toni Weeks

San Diego, Nov. 2 - Chaparral Energy, Inc. entered into the tenth amendment of its eighth restated credit agreement on Nov. 1 to increase the borrowing base to $500 million from $375 million, according to an 8-K filed Friday with the Securities and Exchange Commission.

In addition, the aggregate maximum credit amount was increased to $750 million from $450 million, and the aggregate maximum credit amount, including any exercise of the accordion option, was increased to $850 million.

The credit agreement was extended to Nov. 1, 2017, and the margin was reduced to 150 basis points to 250 bps, depending on the utilization percentage of the conforming borrowing base.

According to the filing, the covenants were amended to permit the existence of all of the company's bond debt that existed on May 2, 2012.

The company was also authorized to issue up to $150 million of additional permitted debt without triggering an automatic borrowing base redetermination as long as the additional permitted debt was issued between Nov. 1 and May 1, 2013.

Chaparral is an Oklahoma City-based oil and natural gas production and exploration company.

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