Sundance Energy amends revolver to swap agent, adjust sizes

By Wendy Van Sickle

Columbus, Ohio, Jan. 14 – Sundance Energy, Inc. entered into an amendment on Tuesday to its revolving credit agreement, dated April 23, 2018 with Toronto Dominion (Texas) LLC as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

Under the amendment, Toronto Dominion replaced KeyBank NA as administrative agent.

Additionally, the following changes were made:

• The borrowing base was increased to $210 million;

• The maximum credit amount was increased to $500 million;

• Elected borrowing commitments were set at $190 million;

• The incurrence of unlimited unsecured subordinated debt is permitted, provided that the borrowing base will automatically be reduced by 25% of the stated amount of such unsecured subordinated debt;

• Interim borrowing base adjustments following the acquisition of oil and gas properties having a purchase price of 5% of the existing borrowing base or $10 million, whichever is greater;

• The leverage ratio was revised to 3.5 to 1.0 and the minimum interest rate coverage ratio to 1.5 to 1.0;

• Maximum permitted hedging was amended to 85% of proved reserves for a rolling 24-month period and 75% for months 25 through 60;

• The definition of “change of control” was revised such that a change of control may occur when, among other situations, any person or group acquires 35% or more of the company’s voting securities, or upon the occurrence of a change of control in respect of any debt under which there is an aggregate of $25 million or more outstanding; and

• A change in the applicable accounting standard to U.S. GAAP from IFRS.

Sundance is an oil and natural gas company located in Denver.

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