RSP Permian increases borrowing base, updates financial ratios

By Marisa Wong

Morgantown, W.Va., Aug. 25 – RSP Permian, LLC, a wholly owned subsidiary of RSP Permian, Inc., amended its amended and restated credit agreement dated Sept. 10, 2013 on Monday to increase the borrowing base to $600 million from $500 million, according to an 8-K filing with the Securities and Exchange Commission.

The amendment also permits the company to incur up to $150 million of debt to pay the deferred purchase price of property, provided that certain conditions are met, and includes that incurred debt in the calculation of the leverage ratio and the senior secured leverage ratio under the credit agreement.

The company completed the amendment concurrently with the closing of its bolt-on acquisitions in its existing core operating areas in the Midland Basin, according to a press release.

No amounts have been drawn under the revolving credit facility.

The next scheduled borrowing base redetermination is in May 2016.

Comerica Bank is the administrative agent for the credit agreement.

The oil and gas company is based in Dallas.

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