EOG Resources gets $2 billion revolving credit facility via JPMorgan

By Toni Weeks

San Luis Obispo, Calif., July 24 – EOG Resources, Inc. entered into a $2 billion senior unsecured revolving credit facility on July 21 with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The facility replaces the company’s $2 billion senior unsecured revolving credit agreement dated Oct. 11, 2011, which was set to mature Oct. 11, 2016. There were no borrowings or letters of credit outstanding under the existing facility, and EOG terminated it without penalty, effective July 21.

The new facility matures July 21, 2020 and may be extended twice for successive one-year periods.

EOG may request to increase the aggregate commitments under the facility to $3 billion.

The facility provides for a Canadian dollar subfacility and a Sterling subfacility, under which EOG Canada Oil & Gas Inc. and EOG Resources United Kingdom Ltd., respectively, may borrow up to the U.S. dollar-equivalent of $150 million.

Borrowings bear interest at Libor plus 69 basis points to 110 bps. The letter-of-credit fee rate is 69 bps to 110 bps, and the facility fee is 60 bps to 15 bps. The exact rates are based on EOG’s credit rating.

Under the terms, the facility requires the company to maintain a total debt to total capitalization ratio of no greater than 65%.

J.P. Morgan Securities LLC, Wells Fargo Securities, LLC, Bank of Tokyo Mitsubishi UFJ, Ltd., Barclays Bank plc, Citigroup Global Markets Inc., Royal Bank of Canada and SG Americas Securities, LLC are the joint lead arrangers and bookrunners. Wells Fargo Bank, NA is the syndication agent. Bank of Tokyo Mitsubishi, Barclays Bank, Citibank, NA, Royal Bank of Canada and Societe Generale are the documentation agents.

EOG is a Houston-based crude oil and natural gas company.

© 2015 Prospect News.
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