Cano Petroleum amends loan to reset borrowing base, revise covenants

By Sara Rosenberg

New York, Jan. 6 - Cano Petroleum Inc. amended its credit facility to redetermine the borrowing base at $60 million and eliminate the leverage and interest coverage ratios for the fiscal quarter ending Dec. 31, according to an 8-K filed with the Securities and Exchange Commission on Wednesday.

In addition, the amendment provides that advances under the facility for any purpose other than to acquire proved, developed, producing oil and gas properties cannot exceed $52 million.

The amendment was completed on Dec. 30.

Union Bank of California is the administrative agent on the deal.

Also, the company amended its subordinated credit facility with UnionBanCal Equities on Dec. 30 to eliminate the leverage and interest coverage ratios for the fiscal quarter ending Dec. 31.

Cano is a Fort Worth, Texas-based oil and natural gas company.

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