Laredo amends credit facility, including 50 bps margin increase

By Wendy Van Sickle

Columbus, Ohio, Oct. 22 – Laredo Petroleum, Inc. entered into a fifth amendment on Thursday to its fifth amended and restated credit agreement, increasing the margin by 50 basis points at every level of the agreement’s pricing grid, according to an 8-K filing with the Securities and Exchange Commission.

Also, the borrowing base was reaffirmed at $725 million, an anti-cash hoarding provision was added and the covenant limiting distributions was modified such that the pro forma consolidated total leverage ratio components were reduced to not greater than 2.00 to 1.00 from not greater than 2.5 to 1.00.

Additionally, the covenant limiting the redemption of senior notes was modified such that the pro forma consolidated total leverage ratio component was increased to not greater than 2.75 to 1.00 from not greater than 2.50 to 1.00, and the consolidated total leverage ratio financial covenant was decreased to not greater than 4.00 to 1.00 from not greater than 4.25 to 1.00 as of the last day of any fiscal quarter ending on or after Dec. 31.

Wells Fargo Bank, NA is the administrative agent, and Laredo Midstream Services, LLC and Garden City Minerals, LLC are guarantors.

Laredo Petroleum is an oil and gas company based in Tulsa, Okla.

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