Resolute Energy amends pricing terms, covenants under credit facility

By Marisa Wong

Morgantown, W.Va., March 22 – Resolute Energy Corp. amended on March 16 its third amended and restated credit agreement dated Feb. 17, 2017 with Bank of Montreal as administrative agent, according to an 8-K filed Thursday with the Securities and Exchange Commission.

The amendment, among other things, amends the definition of applicable margin. Specifically, if the ratio of total funded debt to EBITDA for the period ending June 30 exceeds 4 to 1 then each applicable rate in the pricing grid will be increased by 25 basis points for the period from and after the determination date until the ratio is calculated for the four-quarter period ending Sept. 30.

The company amended the definition of EBITDA to include some costs incurred by the company in connection with activist investor campaigns and to make some changes to the calculation of EBITDA.

The amendment also modifies the covenant governing the ratio of funded debt to EBITDA.

In addition, the borrowing base will now be automatically reduced by 25% of all unsecured debt in excess of $600 million.

BMO Capital Markets and Capital One, NA are joint bookrunners and co-lead arrangers for the credit agreement, with Capital One as syndication agent and Barclays Bank plc, ING Capital LLC and SunTrust Bank as co-documentation agents.

The oil and gas company is based in Denver.

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