Rex Energy amends loan to waive ratio test, reaffirm borrowing base

By Marisa Wong

Morgantown, W.Va., July 6 – Rex Energy Corp. entered into an 11th amendment to its amended and restated credit agreement dated March 27, 2013 with Royal Bank of Canada as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The amendment modifies some provisions of the credit agreement to, among other things, reaffirm the company’s current borrowing base level of $190 million, provided that there will be no further adjustment to the borrowing base upon completion of an anticipated sale of assets in the Illinois Basin.

The amendment also provides flexibility with respect to the company’s use of proceeds from its anticipated asset sale; waives the company’s compliance with the current ratio test for the fiscal quarter ended June 30 and revises the future calculation method for the current ratio to address timing and inclusion of reimbursements from joint development partners; and adds a new PDP coverage ratio with a minimum coverage of 1.65 to 1.00.

The amendment became effective July 1.

Based in State College, Pa., Rex Energy is an oil and gas exploration and production company.

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