Whiting Petroleum reduces revolver to $2.5 billion, increases pricing

By Marisa Wong

Morgantown, W.Va., March 28 – Whiting Petroleum Corp. amended its sixth amended and restated credit agreement dated Aug. 27, 2014 with JPMorgan Chase Bank, NA as administrative agent to decrease the borrowing base, reduce the aggregate revolving commitments and increase pricing.

The third amendment decreases the borrowing base under the credit agreement to $2.75 billion, effective as of May 1, according to an 8-K filing with the Securities and Exchange Commission.

The amendment reduces the aggregate revolving commitments to $2.5 billion and reduces the maximum letter-of-credit commitment amount to $50 million.

In addition, the amendment increases the applicable margin, which is based on borrowing base utilization, by 50 basis points and increases the commitment fee to 50 bps.

The company also amended the credit agreement to, among other things, permit the company to issue second-lien debt up to $1 billion; increase security requirements; impose conditions on the payment of dividends, redemptions and prepayments of certain debt; increase the company’s permitted ratio of total senior secured debt as of the last day of any quarter to EBITDAX during the four quarters then ended to 3.0 to 1.0; and permit the company to dispose of ownership interests in some gas gathering and processing plants located in North Dakota without reducing the borrowing base.

Whiting is an oil and gas exploration and production company based in Denver.

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