Carrizo Oil amends revolving facility for $1.1 billion commitment

By Sarah Lizee

Olympia, Wash., Nov. 1 – Carrizo Oil & Gas, Inc. entered into a 13th amendment to the credit agreement governing its revolving credit facility on Monday to establish the borrowing base at $1.3 billion, with an elected commitment amount of $1.1 billion, until the next redetermination.

The amendment also reduced the applicable margin over Libor to 125 basis points to 225 bps from 150 bps to 250 bps, according to an 8-K filing with the Securities and Exchange Commission.

The margin is based on use and is subject to a 25-bps increase for any period during which the ratio of total debt to EBITDA exceeds 3 to 1.

The commitment fee ranges from 37.5 bps to 50 bps, also depending on use.

Also, the definition of capital leases under the credit agreement was amended, as well as some other definitions and provisions.

Wells Fargo Securities, LLC, Citigroup Global Markets Inc. and Capital One, NA are joint lead arrangers and bookrunners. Wells Fargo Bank, NA is the administrative agent. Credit Agricole CIB and Royal Bank of Canada are co-syndication agents, and Compass Bank and SG Americas Securities, LLC are co-documentation agents.

The company said it will borrow from the revolver to help fund the redemption of its remaining $130 million of 7½% senior notes due 2020. As previously reported, the redemption was conditioned on the $1.1 billion revolver commitment being made available to the company.

Carrizo is a Houston-based oil and gas exploration, development and production company.

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