Ring Energy lifts credit facility to $1 billion, extends maturity

By Marisa Wong

Morgantown, W.Va., April 12 – Ring Energy, Inc. amended and restated on April 9 its existing senior credit facility dated July 1, 2014 with SunTrust Bank as lender, issuing bank and administrative agent in connection with closing of an acquisition, according to an 8-K filing with the Securities and Exchange Commission.

The company increased the maximum facility amount to $1 billion, increased the borrowing base to $425 million and extended the maturity date.

The amended and restated facility has a five-year term and terminates on April 9, 2024.

Loans bear interest at Libor plus 175 basis points to 275 bps, depending on borrowing base use. The unused commitment fee ranges from 30 bps to 50 bps, also based on use.

The financing was funded at the closing of the acquisition and is secured by a first lien with substantially the same collateral requirements as the existing facility.

Ring Energy acquired Wishbone Energy Partners, LLC’s Northwest Shelf assets located primarily in southwest Yoakum County, Texas, and eastern Lea County, New Mexico, for $291 million. The cash portion of the transaction was paid with proceeds from the restated credit facility.

The restated facility has substantially the same covenants as the existing one.

SunTrust Robinson Humphrey, Inc. is the lead arranger and bookrunner, and Compass Bank and IberiaBank are co-syndication agents under the amended facility.

Ring Energy is a Midland, Tex.-based oil and gas exploration, development and production company.

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