W&T Offshore boosts borrowing base on revolver to $525 million via TD

By Susanna Moon

Chicago, May 5 - W&T Offshore, Inc. said it entered into a new four-year revolving bank credit facility that increases the company's borrowing base and revolver capacity to $525 million, up from $405.5 million.

The fourth amended credit agreement is with Toronto Dominion (Texas) LLC as the administrative agent, according to a company press release.

The revolving credit facility has a maturity date of May 5, 2015, which will be accelerated to March 15, 2014 if the company does not refinance or pay in full its 8¼% senior notes due in 2014.

The borrowing base and revolver capacity will automatically increase to $575 million after the acquisition of some properties from Shell Offshore Inc., which is expected to occur in the second quarter.

The new credit terms are substantially the same. Borrowings under the revolving credit facility are secured by the company's oil and natural gas properties and are guaranteed by some of the company's wholly owned subsidiaries.

Availability under the revolver will be reset semiannually based on the lenders' evaluation of the company's proved reserves.

The Permian Basin properties, which the company plans to acquire, also may boost the borrowing base at a subsequent borrowing base redetermination, the release noted.

"This new revolver puts us in an even stronger liquidity position and supports our continuing growth strategy," Tracy W. Krohn, chairman and chief executive officer, said in the release.

W&T Offshore is an independent oil and natural gas company based in Houston.

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