Pacific Exploration extends liquidity deadline in waiver agreement

New York, Feb. 4 – Pacific Exploration & Production Corp. said it has again extended the liquidity deadline imposed under the waivers to terms of its credit agreement.

The deadline for compliance is now 11:59 p.m. ET on Feb. 26. It was previously Feb. 4 and before that Jan. 21.

On Dec. 28 the company received waivers that provide relief of a covenant that requires its consolidated net worth to be above $1 billion and that its consolidated leverage ratio be no more than 4:50 to 1:00, which reflects the permitted gross debt-to-trailing-12-month adjusted EBITDA.

The waivers apply to its $1 billion revolver with Bank of America, NA as administrative agent, its $250 million credit agreement with HSBC Bank USA, NA as agent, its $109 million credit agreement with Bank of America, NA as lender and its $75 million master credit agreement with Banco Latino Americano de Comercio Exterior, SA, as lender.

The waivers are set to expire on Feb. 26 but include a condition that Pacific Exploration & Production and the requisite threshold of lenders reach an agreement on a covenant providing for the minimum amount of unrestricted cash to be retained by the company throughout the waiver period.

Pacific Exploration & Production is a Toronto-based explorer and producer of natural gas and crude oil with operations focused in Latin America.

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