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Energen obtains $600 million syndicated senior unsecured term facility
By Tali David
Minneapolis, Dec. 19 - Energen Corp. and wholly owned subsidiary Energen Resources Corp. entered into a $600 million syndicated senior unsecured term credit facility on Tuesday, according to an 8-K filed with the Securities and Exchange Commission.
The facility refinances and replaces a $300 million syndicated senior unsecured term credit facility provided to the company and guaranteed by Energen Resources on Nov. 29, 2011. The new credit agreement has a four-year maturity with amortization payments of $15 million due on the last day of each fiscal quarter, beginning with the fiscal quarter ending March 31, 2014.
Borrowings under the loan bear interest at one-, two-, three- or six-month Libor plus a margin based on the company's debt ratings for non-credit-enhanced senior unsecured long-term debt.
Initially, they will bear interest at the one-month Energen Libor rate plus 162.5 basis points. The interest rate on the term debt is 1.77%.
Bank of America, NA is the administrative agent; Wells Fargo Bank, NA, Regions Bank, Compass Bank, JPMorgan Chase Bank, NA and U.S. Bank NA are co-syndication agents and the other lenders party thereto. Merrill Lynch, Pierce, Fenner & Smith Inc., Wells Fargo Securities, LLC, Regions Capital Markets, Compass Bank, J.P. Morgan Securities LLC and U.S. Bank NA are joint lead arrangers and joint book managers.
Proceeds will be used for general corporate purposes, to refinance certain existing debt of the company and to pay fees and expenses in connection with the term credit agreement.
Energen is an oil and gas exploration and production company is based in Birmingham, Ala.
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