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Rex Energy lifts borrowing base under credit agreement to $375 million
By Marisa Wong
Madison, Wis., March 31 - Rex Energy Corp. entered into a second amendment to its amended and restated credit agreement dated March 27 with KeyBank NA as administrative agent to increase the borrowing base to $375 million from $325 million, according to an 8-K filing with the Securities and Exchange Commission.
In addition, commitments by the bank group under the facility were raised to $375 million from $215 million, according to a press release.
The second amendment also reduces the pricing grid and adds two new banks to the lending group. Exact pricing was not disclosed in Monday's 8-K.
The bank group is comprised of KeyBank NA, Royal Bank of Canada, SunTrust Bank, BMO Harris Financing, Capital One, NA, Huntington National Bank, M&T Bank, One West Bank, NA, Union Bank, NA, U.S. Bank, NA and Wells Fargo Bank, NA.
The increase in the borrowing base is the direct result of the company's continued success in its drilling program, increases to estimated ultimate recoveries and strong growth in reserves and production. Under the terms of the credit agreement, the bank group re-determines the borrowing base semiannually using the bank's estimates of reserves and future oil and gas prices.
"The increase in our borrowing base to $375 million demonstrates the tremendous value of our assets," Tom Stabley, Rex Energy's chief executive officer, commented in the press release.
"We appreciate the support of our bank group and believe that the increased borrowing base, coupled with our already ample liquidity, only furthers Rex Energy's ability to develop our assets."
Rex Energy is a State College, Pa.-based independent oil and gas exploration and production company operating in the Appalachian and Illinois Basins.
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