Sanchez Energy credit agreement amendment cuts leverage covenant

By Wendy Van Sickle

Columbus, Ohio, July 24 – Sanchez Energy Corp. amended its agreement Monday to eliminate a consolidated leverage covenant and include provisions to allow a midstream facility venture, according to an 8-K filed with the Securities and Exchange Commission.

The eliminated covenant required Sanchez to maintain a consolidated EBITDA to consolidated net interest expense ratio of not less than 2.25 to 1.0.

The amended facility also allows Sanchez and certain subsidiaries to make specified investments in connection with a joint venture to develop a midstream facility.

Royal Bank of Canada is the administrative agent.

Sanchez Energy is a Houston-based oil and gas exploration and development company.

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