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Rex Energy gets $300 million amended, restated five-year revolver
By Angela McDaniels
Tacoma, Wash., April 2 - Rex Energy Corp. entered into an amended and restated senior secured revolving credit agreement on March 27, according to an 8-K filing with the Securities and Exchange Commission.
Initially, the borrowing base is $325 million; however, the maximum commitments of the lenders are currently limited to $300 million. The borrowing base is calculated based on a valuation of the company's oil and gas properties and is redetermined semiannually.
The maturity date is March 27, 2018.
The interest rate is Libor plus 175 basis points to 275 bps. The exact margin depends on the company's borrowing use.
The revolver has a $25 million letter of credit subfacility.
KeyBank NA is the administrative agent, Royal Bank of Canada is the syndication agent and SunTrust Bank is the documentation agent.
Borrowings will be used to provide working capital for exploration and production operations and for general corporate purposes.
The financial covenants require the company to maintain a minimum ratio of consolidated current assets to consolidated current liabilities of 1 to 1, a minimum ratio of EBITDAX to interest expense of 3 to 1 and a maximum ratio of total debt to EBITDAX of 4.25 to 1.
The revolver is secured by mortgages on the oil and gas properties of the company and its subsidiaries. The company must maintain liens covering the oil and gas properties of the company and its subsidiaries representing at least 80% of the total value of those oil and gas properties.
Subsidiaries Rex Energy I, LLC, Rex Energy Operating Corp., PennTex Resources Illinois, Inc., Rex Energy IV, LLC and R.E. Gas Development, LLC are guarantors.
The oil and gas exploration and production company is based in State College, Pa.
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