Sanchez Energy amends agreement, cuts borrowing base to $425 million

By Tali Rackner

Norfolk, Va., Jan. 25 – Sanchez Energy Corp. amended its second amended and restated credit agreement dated June 30, 2014 to reduce the borrowing base to $425 million from $500 million, according to an 8-K filing with the Securities and Exchange Commission.

The amendment also allows for repurchases of senior unsecured notes and equity interests issued by the company for aggregate cash consideration not to exceed roughly $98.5 million, subject to a sublimit of about $48.5 million for repurchases of equity interests other than preferred stock, and permits the company to incur second-lien debt.

In addition, it provides for the reduction of the borrowing base by 25% of the amount of any second-lien debt incurred (other than second-lien debt issued in exchange for or the proceeds of which are used to redeem the company’s senior unsecured notes and other than second-lien debt that refinances second-lien debt or represents payment of interest in kind).

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.