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Atlas amends credit facility, lowers borrowing base to $700 million
By Tali Rackner
Norfolk, Va., Nov. 23 – Atlas Resource Partners, LP entered into an amendment to its revolving credit facility and revised its credit facility borrowing base to $700 million, a decrease of about 6.7% from the previous level, according to a press release.
In order to provide increased flexibility as a result of the current commodity price environment, the partnership reached an agreement with its commercial bank lending group to amend certain terms of its revolver. The new terms include:
• Suspension of a maximum total leverage covenant until the first quarter 2017; as well as new maximum total leverage covenants in future periods; including: (a) 5 times beginning in the first quarter of 2017; (b) 5.5 times beginning in the third quarter of 2017; (c) 5.25 times beginning in the first quarter of 2018; and (d) 5 times beginning in the second quarter of 2018;
• Elimination of senior secured leverage covenant;
• Addition of maximum first-lien secured leverage covenant of 2.75 times; and
• Ability to add additional subordinated secured debt.
Total leverage as of the 2015 third quarter was about 5.1 times.
The next borrowing base redetermination is expected to occur in May 2016.
As part of the amendment of the credit facility, Atlas agreed to adjust the common unit distribution to $0.15 per annum, which it expects to pay on a monthly basis.
Atlas Resource Partners is a Pittsburgh-based master limited partnership and independent developer of oil and gas.
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