Resolute Energy trims ABL revolver to $500 million, extends to 2024

By Wendy Van Sickle

Columbus, Ohio, May 14 – Resolute Energy Corp. extended its $500 million senior secured asset-based revolving credit facility by five years, according to a news release.

The extension of the ABL credit facility includes a voluntary reduction in the lenders commitment of $100 million.

The facility includes a $300 million tranche available to U.S. and Canadian borrowers, with the remaining $200 million available only to U.S. borrowers, in each case subject to the borrowing base.

There is a $60 million sublimit for swingline loans and a $200 million sublimit for letters of credit.

Bank of America, Wells Fargo and Bank of Montreal acted as joint lead arrangers and joint bookrunners. CIBC and TD acted as co-documentation agents. Bank of America is the administrative agent.

“By renewing and extending the ABL through May 2024, we are taking advantage of our strong financial position and of attractive bank market conditions to lock-in a competitive source of liquidity for the long-term,” Remi Lalonde, senior vice president and chief financial officer of Resolute, said in the release.

At closing, the revolver was undrawn, aside from $51 million of ordinary course letters of credit outstanding.

Proceeds are earmarked for growth and transformative initiatives.

The independent oil and natural gas exploration and production company is based in Denver.

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