Resolute Energy enters into $150 million restated revolving facility

By Tali Rackner

Norfolk, Va., Feb. 21 – Resolute Energy Corp. entered into a third amended and restated credit agreement on Friday with Bank of Montreal as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The agreement provides for an initial $150 million revolving credit facility. The borrowing base is re-determined semiannually.

The facility matures in February 2021.

Borrowings bear interest at Libor plus 300 basis points to 400 bps, depending on the borrowing base use percentage.

The revolver includes certain covenants that require Resolute to maintain a minimum ratio of current assets to current liabilities of 1 time and a maximum ratio of funded debt to EBITDA of 4 times.

Capital One, NA acted as syndication agent on the deal with Barclays Bank plc, ING Capital LLC and SunTrust Bank as co-documentation agents and BMO Capital Markets Corp. and Capital One as joint bookrunners and co-lead arrangers.

In connection with the new revolving credit facility, the company repaid all amounts outstanding under the second amended and restated credit agreement, dated April 15, 2015, with Wells Fargo Bank, NA as administrative agent.

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

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