Centennial Resource Production lifts interest, raises borrowing base

By Wendy Van Sickle

Columbus, Ohio, Oct. 11 – Centennial Resource Production, LLC amended its credit agreement dated Oct. 15, 2014 with JPMorgan Chase Bank, NA, as administrative agent to reflect the repayment in full of all term loans thereunder and increase the borrowing base to $200 million from $140 million, among other things, according to an 8-K filing with the Securities and Exchange Commission.

The amendment also increases the interest rate to Libor plus 225 basis point to 325 bps, depending on utilization, and requires the company to have sufficient liquidity and satisfy a maximum leverage ratio in order to make dividends.

The amendment was in connection with Centennial Resource Development, Inc.’s (formerly Silver Run Acquisition Corp.) acquisition of 89% of the outstanding membership interests in Centennial Resource Production.

Denver-based Centennial Resource Production is an independent oil and natural gas company with properties in the core of the Southern Delaware Basin.

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