Eagle Rock amends facility covenants for step-up in leverage ratios

By Marisa Wong

Madison, Wis., July 23 - Eagle Rock Energy Partners, LP announced that it amended its existing senior secured credit facility to allow for a temporary step-up in the total leverage ratio and the senior secured leverage ratio through the third quarter of 2014.

The amendment is effective as of June 30 and adjusts the total leverage ratio and senior secured leverage ratio covenants as follows:

• The total leverage ratio is now 5.5 times for the second through fourth quarters of 2013, stepping down to 5.25 times for the first quarter of 2014, to 5 times for second quarter 2014, to 4.75 times for third quarter 2014 and to 4.5 times after that.

The total leverage ratio was previously 4.75 times for the second and third quarters of 2013 and 4.5 times after that; and

• The senior secured leverage ratio is now 3.15 times for the second through fourth quarters of 2013, 3.1 times for the first quarter of 2014, 3.05 times for second quarter 2014 and 2.95 times for third quarter 2014.

Before, the senior secured leverage ratio was just 2.85 times for the second and third quarters of 2013.

The midstream and upstream oil and natural gas company is based in Houston.

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