Riviera’s Blue Mountain unit gets $200 million five-year revolver

By Susanna Moon

Chicago, Aug. 16 – Riviera Resources, Inc.’s wholly owned subsidiary Blue Mountain Midstream LLC obtained a new $200 million five-year revolving credit facility on Aug. 10, according to an 8-K filing with the Securities and Exchange Commission.

Interest on the loan is Libor plus 200 basis points to 300 bps, based on Blue Mountain’s consolidated total leverage ratio.

The unused fee ranges from 37.5 bps or 50 bps.

RBC Capital Markets, Citigroup Global Markets Inc. and Capital One Securities, Inc. are the joint lead arrangers and joint bookrunners. ABN Amro Capital USA LLC and PNC Capital Markets LLC are the joint lead arrangers.

Royal Bank of Canada is the administrative agent. Citibank, NA and Capital One, NA are the co-syndication agents; and ABN Amro Capital USA LLC and PNC Bank NA are the co-documentation agents.

At closing, there were no borrowings outstanding under the facility and the initial available borrowing capacity was $70 million.

The facility matures on Aug. 10, 2023 and is secured by a first priority lien on substantially all the assets of Blue Mountain.

Blue Mountain is required to maintain a consolidated owners’ equity interest in Blue Mountain and its subsidiaries of no greater than 0.35 times, a consolidated interest expense no less than 2.5 times, a ratio of consolidated net debt to consolidated EBITDA no greater than 4.5 times and a ratio of consolidated net debt secured by a lien on property of Blue Mountain to consolidated EBITDA no greater than 3 times.

Riviera is an independent oil and natural gas company based in Houston.

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