Clayton Williams Energy amends and restates credit facility, deferring borrowing base reduction

By Sara Rosenberg

New York, March 7 - Clayton Williams Energy Inc. amended and restated its credit facility, deferring a reduction in the borrowing base that would have occurred as a result of its proposed $300 million senior notes offering, according to an 8-K filed with the Securities and Exchange Commission on Monday.

Proceeds from the company's new bond offering will be used to repurchase 7¾% senior notes due 2013 and repay revolving credit facility borrowings.

In addition, the credit facility amendment allows the company to have $625 million of senior notes outstanding until Sept. 1, 2011, whereas before, the amount of permissible notes was capped at $475 million.

The amendment and restatement was completed on March 3.

JPMorgan Chase Bank is the administrative agent on the deal.

Clayton Williams is a Midland, Texas-based oil and gas company.

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