Resolute Energy amends credit agreement borrowing base terms

By Marisa Wong

Morgantown, W.Va., Oct. 19 – Resolute Energy Corp. entered into a second amendment on Oct. 18 to its third amended and restated credit agreement dated Feb. 17, 2017, according to an 8-K filing with the Securities and Exchange Commission.

The second amendment reaffirms the borrowing base at $218.75 million. Once the company completes a disposition of its Aneth Field assets, the borrowing base will automatically decrease to $210 million.

The amendment also provides that the borrowing base will automatically be reduced by 25% of all unsecured debt in excess of $550 million, increased from $500 million.

In addition, the company updated the definition of EBITDA to include customary transaction costs and expenses incurred in connection with any material acquisition or disposition, modified the calculation of EBITDA and amended the covenant governing the ratio of current assets to current liabilities for the quarter ended Sept. 30.

Under the amendment, the company is permitted to enter into derivative arrangements for up to the greater of 75% of its anticipated projected production from properties and 85% of its anticipated projected production from proved properties for the first year of that derivative arrangement.

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

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

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