Rex Energy amends financial covenants, to repay revolver, term loan

By Marisa Wong

Madison, Wis., Nov. 13 - Rex Energy Corp. amended its credit agreement dated Sept. 28, 2007 with KeyBank NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The 11th amendment, effective Nov. 12, amends certain provisions of the credit agreement to, among other things, require that the company maintain a ratio of total debt to EBITDAX of less than or equal to 4.25 to 1.00 for quarters ending after Dec. 31.

According to the filing, Rex Energy concurrently entered into a third amendment to its second-lien credit agreement dated Dec. 22, 2011 with KeyBank as administrative agent. The company is now also required under the second-lien credit agreement to maintain a ratio of total debt to EBITDAX of less than or equal to 4.25 to 1.00 for quarters ending after Dec. 31.

In addition, the company announced on Tuesday that it plans to repay all revolver debt and to repay and terminate its second-lien term loan using proceeds from an offering of senior notes due 2020. The $250 million notes offering is expected to price during the Nov. 12 week.

The independent oil and gas exploration and production company is based in State College, Pa.

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