RSP Permian increases revolver to $2.5 billion, extends it to 2021

By Angela McDaniels

Tacoma, Wash., Dec. 20 – RSP Permian, Inc. entered into an amended and restated credit agreement that extends the maximum commitments of RSP Permian, LLC’s senior secured revolving credit facility to $2.5 billion from $1 billion, increases the borrowing base to $950 million and extends the maturity date to Dec. 19, 2021, according to a company news release.

The company said the $950 million borrowing base only reflects the reserve growth from its Midland Basin assets and the recently closed first half of the Silver Hill acquisition.

In addition, the amended and restated credit agreement gives the borrower the ability, subject to some conditions, to elect the amount of the aggregate commitments up to the amount of the borrowing base then in effect. The borrower has initially elected $900 million of commitments.

The bank syndicate, co-arranged by JPMorgan Chase Bank, NA and Comerica Bank, was expanded to 21 banks from 11 banks.

Finally, the 3 times maximum ratio of total secured debt to trailing 12 months EBITDAX was removed, and the maximum ratio of total debt to trailing 12 months EBITDAX was reduced to 4.25 times from 4.5 times.

“This expanded facility will increase our financial flexibility and support our plan to accelerate our pace of development in 2017,” chief executive officer Steve Gray said in the news release.

RSP Permian is an oil and natural gas company based in Dallas.

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