EnerJex Resources amends credit terms with Texas Capital Bank

By Susanna Moon

Chicago, May 5 – EnerJex Resources, Inc. amended its credit agreement on April 29 with Texas Capital Bank, NA as administrative agent and letter-of-credit issuer, according to an 8-K filing with Securities and Exchange Commission.

Under the amended terms, the banks

• Reset the borrowing base based upon the reserve report dated Jan. 1;

• Imposed affirmative obligations on the borrowers to use a portion of proceeds received from future sales of securities or certain assets to repay the loan;

• Consented to non-compliance by borrowers with certain terms of the credit agreement; and

• Waived certain provisions of the credit agreement.

The letter agreement and the bank’s waiver expire earlier if the aggregate amount of dividends paid equals or exceeds $1 million.

The company entered into a letter agreement on May 1 to clarify that up to $1 million of proceeds from any potential future securities offering will be unencumbered by the banks’ liens as described in the credit agreement through Nov. 1, 2015 and that until Nov. 1, 2015 the proceeds will not be subject to provisions in the agreement prohibiting the company from paying dividends that may be due to holders of securities issued in the potential offerings or issued prior to the letter agreement.

EnerJex is a San Antonio-based independent oil and gas exploration and production company.

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