Rex Energy amends borrowing base terms, reduces LoC commitment level

By Marisa Wong

Morgantown, W.Va., Jan. 17 – Rex Energy Corp. amended its amended and restated credit agreement dated March 27, 2013 with Royal Bank of Canada as administrative agent to, among other things, modify terms of the borrowing base and reduce the commitment level for letters of credit, according to an 8-K filing with the Securities and Exchange Commission.

Effective as of Jan. 11, the amendment provides that there will be no adjustment to the borrowing base upon completion of the anticipated sale of assets in the company’s Warrior South Area located in Guernsey, Noble and Belmont Counties, Ohio, with the effect that the borrowing base remains at its current level of $190 million pending the next redetermination.

The amendment also reduces the commitment level for letters of credit to the greater of (a) $40 million and (b) $50 million minus an amount equal to the portion of the face amount of all surety LoCs reduced or terminated on or after the amendment effective date in excess of $10 million total.

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

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