Rex Energy amends credit agreement’s borrowing base, leverage covenant

By Tali Rackner

Norfolk, Va., April 2 – Rex Energy Corp. entered into an amendment to its credit agreement on March 27 with Royal Bank of Canada as administrative agent, modifying the available borrowing base and the leverage covenant, according to an 8-K filing with the Securities and Exchange Commission.

Rex Energy’s bank group unanimously approved a borrowing base of $350 million in connection with the annual required spring redetermination.

In addition, financial covenants now require the company to maintain a maximum net senior secured debt to EBITDAX of 3 times for any fiscal quarter ending on or after March 31, measured on a trailing four-quarter basis. The total debt to trailing 12-months EBITDAX covenant was removed.

State College, Pa.-based Rex is an independent oil and gas exploration and production company operating in the Appalachian and Illinois Basins.

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