Rice Energy subsidiaries enter into $750 million of revolvers

By Marisa Wong

Madison, Wis., Dec. 23 – Rice Energy Inc. entered into a $450 million revolving credit facility on Dec. 22 with Wells Fargo Securities, LLC as lead arranger and bookrunner and Wells Fargo Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

Wholly owned subsidiary Rice Midstream OpCo LLC is the borrower, and Rice Energy is the guarantor.

The credit agreement provides for an additional $200 million of commitments available under an accordion feature.

The credit facility has a $50 million letter-of-credit sublimit.

The credit facility will mature on Dec. 22, 2019.

Borrowings will bear interest at Libor plus an applicable margin ranging from 175 basis points to 275 bps, depending on the leverage ratio.

The partnership will also pay a commitment fee based on the undrawn commitment amount ranging from 35 bps to 50 bps.

Midstream Holdings facility

Also on Dec. 22, Rice Energy’s wholly owned subsidiary, Rice Midstream Holdings LLC, entered into a $300 million revolving credit facility with Wells Fargo Securities, LLC as lead arranger and bookrunner and Wells Fargo as administrative agent.

The credit facility includes a $100 million accordion feature and a $25 million letter-of-credit sublimit.

The credit facility will mature on Dec. 22, 2019.

The interest rate is Libor plus an applicable margin ranging from 225 bps to 300 bps, depending on the leverage ratio. The commitment fee is based on the undrawn commitment amount and ranges from 37.5 bps to 50 bps.

Rice is an oil and gas company based in Canonsburg, Pa.

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