Rex Energy trims credit agreement borrowing base, ups drawn pricing

By Marisa Wong

Morgantown, W.Va., Feb. 3 – Rex Energy Corp. entered into a ninth amendment to its amended and restated credit agreement dated March 27, 2013 with Royal Bank of Canada as administrative agent to, among other things, decrease the borrowing base to $200 million from $350 million, according to an 8-K filing with the Securities and Exchange Commission.

The amendment, completed on Wednesday, increases the company’s drawn pricing by 75 basis points across the grid with a flat 50 bps undrawn fee.

The amendment also permits the company to issue new senior secured second-lien notes in an amount up to $480 million, inclusive of accrued interest payable on the settlement date on the principal amount of any senior unsecured notes that are exchanged for new notes in connection with an exchange offering.

In addition, the amendment modifies the calculation of the company’s maximum 3.0 times ratio of net senior secured debt to EBITDAX to exclude undrawn letters of credit related to firm transportation contracts and new notes from an exchange offer.

The amendment increases the requirement for mortgages on oil and gas properties to 90% from 80%.

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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