Murphy Oil signs for $800 million revolving credit facility due 2027

By Mary-Katherine Stinson

Lexington, Ky., Nov. 18 – Murphy Oil Corp. entered an $800 million senior guaranteed revolving credit facility on Nov. 17, according to an 8-K filing with the Securities and Exchange Commission.

It is set to mature in November 2027.

Borrowings under the revolving credit facility will bear interest at SOFR plus 10 basis points plus a margin based on a pricing grid.

The full pricing grid will be filed with the company’s next quarterly report.

There will be a modification of certain covenants on the date the company achieves investment grade-ratings. Prior to that the company will be required to comply with a maximum consolidated leverage ratio of 3.5x, and a minimum consolidated interest coverage ratio of 2.5x.

From and after the investment-grade ratings date, the company will be required to comply with a maximum ratio of consolidated total debt to consolidated total capitalization of 60%.

Effective Nov. 17, the company terminated its previous credit agreement dated Nov. 28, 2018.

Murphy Oil is an independent oil and natural gas exploration and production company based in Houston.

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