Concho Resources amends mortgage coverage requirement in loan terms

By Susanna Moon

Chicago, Oct. 29 - Concho Resources Inc. amended its mortgage coverage requirement under its credit agreement with JPMorgan Chase Bank, NA as administrative agent on Tuesday, according to an 8-K filing with the Securities and Exchange Commission.

The terms now require the company to provide mortgages covering properties included in the its reserve report used to determine the borrowing base valued at a minimum of 1.75 multiplied by the lesser of the borrowing base and the lenders' aggregate commitments under the agreement.

Before the amendment, the agreement required the company to provide mortgages covering at least 80% of the value of the properties included in the company's reserve report used to determine the borrowing base.

The amendment also reaffirms the company's current borrowing base of $3 billion and maintains the lenders' aggregate commitments of $2.5 billion under the amended agreement.

Concho is a Midland, Texas-based oil and natural gas company.

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