Roan Resources amends credit agreement, reduces pricing by 25 bps

By Wendy Van Sickle

Columbus, Ohio, Sept. 27 – Roan Resources, Inc. amended its credit agreement dated Sept. 5, 2017 with Citibank, NA as administrative agent to increase the borrowing base to $675 million from $425 million, to trim pricing by 25 basis points at every utilization level and to make several other changes, according to an 8-K filed with the Securities and Exchange Commission.

Pricing is now Libor plus a margin ranging from 200 bps to 300 bps, depending on use.

Thursday’s amendment also

• Reduces the commitment fee rate at the two lowest borrowing base use levels to 37.5 bps from 50 bps. The fee remains 50 bps at the three highest levels;

• Increases the amount of cash that may be netted out of consolidated total debt for purposes of the consolidated total debt to consolidated EBITDAX ratio to $40 million if there is any exposure under the credit agreement and an unlimited amount otherwise. The amount was $25 million previously;

• Modifies the definition of qualifying initial public offering such that the issuance by a parent that owns, directly or indirectly, 100% of the equity of Roan Resources LLC constitutes a qualifying IPO;

• Provides that there will be no reduction of the borrowing base in connection with the issuance of any permitted additional debt for the first $500 million in principal of such debt; and

• Permits some additional restricted payments to be made.

The independent oil and natural gas exploration and production company is based in Oklahoma City.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.