Sanchez Energy’s borrowing base conditionally kept at $350 million

By Marisa Wong

Morgantown, W.Va., Dec. 12 – Sanchez Energy Corp. entered into an agreement on Dec. 9 with Royal Bank of Canada as administrative agent under its second amended and restated credit agreement dated June 30, 2014, according to an 8-K filing with the Securities and Exchange Commission.

In connection with the fall 2016 redetermination of the borrowing base under the credit agreement, RBC confirmed that the required lenders under the credit facility have agreed to maintain Sanchez’s existing $350 million borrowing base as long as Sanchez does not increase its existing $300 million elected commitment amount until the spring 2017 borrowing base redetermination.

The agreement also provides that Sanchez’s borrowing base will be automatically reduced to $300 million if the administrative agent notifies Sanchez of this reduction prior to the spring 2017 borrowing base redetermination.

Sanchez is an oil and natural gas exploration and production company based in Houston.

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