Clayton Williams decreases borrowing base, extends financial covenants

By Tali Rackner

Norfolk, Va., Nov. 12 – Clayton Williams Energy, Inc. entered into an amendment to its credit agreement with JPMorgan Chase Bank, NA as administrative agent, reducing the borrowing base to $450 million from $500 million and extending the temporary covenant amendments originally set for expiration in 2016, according to a press release.

As adjusted, funds available to the company under the revolving credit facility at Sept. 30 totaled $298.1 million after allowing for outstanding advances and letters of credit.

In addition, some financial covenants set to expire in 2016 were extended through the fourth quarter of 2017. In February 2015, the revolving credit facility was amended to temporarily limit consolidated senior debt to 2.5 times consolidated EBITDAX and consolidated interest expense to 1.5 times consolidated EBITDAX. Originally, these temporary amendments applied to each quarterly period through June 30, 2016.

Clayton Williams is an independent energy company located in Midland, Texas.

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