Vanguard Natural Resources amends loan, changing maturity and pricing

By Sara Rosenberg

Vanguard Natural Resources LLC amended its credit facility, extending the maturity date to Oct. 1, 2012, increasing pricing, adding two new lenders and raising the borrowing base, according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

Pricing on the facility can now range from Libor plus 225 basis points to 300 bps, depending on use, as opposed to Libor plus 150 bps to 212.5 bps.

The borrowing base under the facility was increased to $175 million from $154 million as a result of the company pledging additional natural gas and oil assets associated with its recent South Texas acquisition from Lewis Energy.

In addition, the amendment reduced the debt-to-EBITDA covenant to 3.5 times from 4.0 times.

The company currently has $46 million of borrowing capacity under the facility.

The amendment was completed on Aug. 31.

Citibank is the administrative agent on the deal.

Vanguard is a Houston-based company focused on the acquisition, production and development of natural gas and oil properties.

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