Resolute Energy amends loan, eases leverage terms via BMO, Capital One

By Susanna Moon

Chicago, May 9 – Resolute Energy Corp. amended its credit agreement on Monday with BMO Capital Markets and Capital One, NA as joint bookrunners and co-lead arrangers, according to an 8-K filing with the Securities and Exchange Commission.

The first amendment revised the leverage ratio covenant to raise the maximum ratio to 4.5 times for the fiscal quarter ending June 30, to 4.25 times for the fiscal quarter ending Sept. 30 and to 4 times for fiscal quarters ending after that.

The company amended the debt covenant of the credit agreement to provide that the borrowing base will be reduced by 25% of all unsecured debt of the company in excess of $500 million, which was previously $400 million.

The syndicate of banks was led by Bank of Montreal as administrative agent. Capital One, NA is the syndication agent. Barclays Bank plc, ING Capital LLC and SunTrust Bank are the co-documentation agents.

The outstanding borrowings under the credit agreement were $42 million as of April 30.

Resolute Energy is a Denver-based independent oil and natural gas exploration and production company.

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