Berry Petroleum expands credit agreement borrowing base, converts benchmark to term SOFR

By Marisa Wong

Los Angeles, June 1 – Berry Corp. as a guarantor and wholly owned subsidiary Berry Petroleum Co., LLC as borrower entered into a third amendment on May 27 to their credit agreement dated Aug. 26, 2021 with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The amendment increases the borrowing base to $250 million from $200 million, which constitutes a redetermination of the borrowing base that was scheduled to occur on or about May 1; establishes the aggregate elected commitment amounts at $200 million initially; and converts all outstanding eurodollar loans into term benchmark loans with an initial interest period of one-month’s duration and otherwise gives effect to the transition from Libor to SOFR by replacing adjusted Libor with term SOFR for one, three or six months plus 10 basis points, subject to a floor of 0.5%.

After giving effect to the amendment, the amount available to be borrowed under the credit facility at any time is the least of the aggregate maximum credit amounts, the then effective borrowing base and the then effective aggregate elected commitment amounts.

As of the date of the amendment until the next redetermination date or any date on which the company increases or decreases the aggregate elected commitment amounts, the amount available to be borrowed under the credit facility is $200 million, which represents the aggregate elected commitment amounts.

Berry is a Dallas-based energy company.

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