Chesapeake Energy avoids $2 million fee, trims pricing by terminating credit agreement amendment

By Toni Weeks

San Luis Obispo, Calif., July 8 - Chesapeake Energy Corp. and some of its subsidiaries terminated the effective period of the third amendment to its eighth amended and restated credit agreement on June 28, according to an 8-K filing with the Securities and Exchange Commission.

Among other things, the termination of the Sept. 25, 2012 amendment

• Reinstated the debt-to-EBITDA ratio of 4.00 to 1.00, which was in effect prior to the amendment;

• Removed the requirement that the company maintain additional collateral for borrowings under the credit agreement;

• Removed the 25-basis-points increase in the applicable margin for borrowings that exceed 50% of the borrowing capacity; and

• Eliminated the obligation of the company to pay a $2 million fee to its lenders on June 30.

Union Bank, NA is the administrative agent. Wells Fargo Bank, NA, Royal Bank of Scotland plc and BNP Paribas are the co-syndication agents. Credit Agricole Corporate and Investment Bank is the documentation agent.

Chesapeake Energy is an Oklahoma City-based oil and natural gas exploration and production company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.