Endeavor International gets OK to issue up to $500 million of notes

By Marisa Wong

Madison, Wis., Jan. 20 - Endeavour International Corp. and its wholly owned subsidiary, Endeavour Energy UK Ltd., entered into a consent and fourth amendment to its credit agreement, U.S. security agreement and subsidiaries guaranty on Jan. 18, according to an 8-K filing with the Securities and Exchange Commission.

The main provisions of the amendment include the following:

• Consent and approval for the company to issue up to $500 million of senior notes;

• Exclusion of up to $500 million of senior notes from certain financial covenants; and

• Amendments to certain existing financial covenants, including a reduction in the minimum consolidated EBITDAX requirement to $20 million for each of the test periods ended Dec. 31 and ending March 31 and an extension of the increase in the minimum PDP coverage ratio to 0.50 to 1.00 from 0.25 to 1.00 after March 31.

Cyan Partners, LP is the administrative agent.

Endeavor is a Houston-based independent oil and gas company.

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