Rex Energy gets $300 million delayed-draw loan at Libor plus 875 bps

By Susanna Moon

Chicago, May 1 – Rex Energy Corp. obtained a $300 million first-lien delayed-draw term loan due April 2021 at Libor plus 875 basis points.

Rex closed the agreement with a lending group led by Angelo, Gordon & Co. for initial borrowings of about $144 million to repay its previous senior secured credit facility and to place about $19.3 million of cash on the balance sheet, according to a company announcement.

The new facility also includes about $46.5 million for outstanding undrawn letters of credit.

After the debt repayment, the company will have about $110 million of term loans to use for the development of the company’s core assets and general corporate purposes.

The term loan allows for the issue of up to another $100 million of secured first-lien debt for “reserve development and acquisitions, positioning Rex Energy well for years to come,” the company said.

“This transaction will further ensure the execution of our two-year development plan in the Appalachian Basin,” Tom Stabley, Rex Energy’s president and chief executive officer, said in the press release.

“The term loan provides Rex Energy with additional liquidity to continue to develop our high-return locations and the potential to access the M&A market.”

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

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