Resolute Energy increases revolver to $260 million, extends maturity

By Angela McDaniels

Tacoma, Wash., March 31 - Resolute Energy Corp. has closed an amended and restated senior secured revolving credit facility with a syndicate of banks led by Wells Fargo and Bank of Montreal, according to a company news release.

The credit facility incorporates changes to the company's existing facility, including:

• Extending the maturity date to March 30, 2014 from April 13, 2011;

• Increasing the maximum amount available for borrowing to $500 million from $300 million;

• Increasing the borrowing base to $260 million from $240 million, subject to periodic redetermination; and

• Reducing the interest rate pricing grid for Libor-based loans by 25 basis points on the low end of the utilization grid to 50 bps on the high end. The interest rate is now Libor plus a margin that varies from 225 bps to 300 bps.

As of Tuesday, Resolute had $115.4 million in credit facility debt outstanding, $8.5 million of borrowing base capacity reserved against letters of credit and unused availability of $136.1 million.

"The increased borrowing base, coupled with our continued ability to generate cash from operating activities, will allow us to deliver on our indicated capital plan and invest in future opportunities as they arise," chief financial officer Theodore Gazulis said in the release.

Resolute is a Denver-based independent oil and gas company.

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