EPL, Energy XXI Gulf Coast amend facility to adjust certain covenants

By Jennifer Chiou

New York, Sept. 9 – EPL Oil & Gas, Inc. and Energy XXI Gulf Coast, Inc. entered into an amendment to their credit agreement with the Royal Bank of Scotland plc as administrative agent, according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

The amendment provides for, among other things, an adjustment to the total leverage ratio covenant, which may not exceed 4.25 times the amount of EBITDA for Gulf Coast and its consolidated subsidiaries for the fiscal quarters ended June 30 and ending Sept. 30, Dec. 31, 2014 and March 31, 2015 and may not exceed 4.00 times the amount of EBITDA for each fiscal quarter ending June 30, 2015 and thereafter.

Prior to the amendment, the total leverage ratio of Energy XXI Gulf Coast and its consolidated subsidiaries was required not to exceed 3.50 times EBITDA, although the company and EPL had obtained on Aug. 22 a waiver for that requirement for the fiscal quarters ended June 30 and ending Sept. 30.

The filing added that Energy XXI Gulf Coast and its subsidiaries have to limit the amount of their secured debt to an amount not to exceed 1.75 times the EBITDA for the fiscal quarters ending Sept. 30, 2014, Dec. 31, 2014 and March 31, 2015 and 1.50 times EBITDA for any fiscal quarter ending June 30, 2015 and thereafter.

The companies said that the borrowing base is maintained at $1.5 billion for Energy XXI Gulf Coast.

Energy XXI Gulf Coast and EPL are oil and natural gas exploration and production companies based in New Orleans and Houston.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.