Regency Gas amends loan, modifying leverage and interest coverage ratios

By Sara Rosenberg

New York, July 3 - Regency Gas Services LP amended its credit facility, revising the maximum total leverage and minimum consolidated interest coverage ratios, according to an 8-K filed with the Securities and Exchange Commission Tuesday.

The amended total leverage ratio is 6.0 to 1.0 up to and including Dec. 31, 2007, unless the company has received at least $75 million in net cash proceeds from the issuance of equity, in which event it's 5.75 to 1.0. Ending after Dec. 31, 2007 and during certain specified periods - following completion of projects - the ratio is 5.75 to 1.0. At any other time, the ratio is 5.25 to 1.0.

Prior to the amendment, the leverage ratio was 5.75 to 1.0 for a specified period, and then 5.25 to 1.0.

The amended consolidated interest coverage ratio is 2.50 to 1.0 up to and including Dec. 31, 2007, and 2.75 to 1.0 thereafter.

Prior to the amendment, the consolidated interest coverage ratio was 2.75 to 1.0.

Wachovia is the administrative agent on the deal.

Regency Gas is a Dallas-based independent energy company.

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