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Northern Oil and Gas enters amended facility with 11-bank syndicate
By Jennifer Chiou
New York, March 2 - Northern Oil and Gas, Inc. entered into an amendment and restatement of its revolving credit facility on Feb. 28 to replace the company's prior credit facility with Macquarie Bank Ltd., according to an 8-K filing with the Securities and Exchange Commission.
The filing stated that the credit facility is now syndicated with 11 lenders: Royal Bank of Canada as administrative agent; SunTrust Bank as syndication agent; Bank of Montreal, KeyBank NA and U.S. Bank NA as co-documentation agents; and additional participating banks BMO Harris Financing, Inc., Capital One, NA, Bank of Scotland plc, Bank of Oklahoma, BB&T Capital Markets, Cadence Bank NA and Macquarie Bank Ltd.
The Wayzata, Minn.-based independent energy company said that availability under the facility is the lesser of $750 million and the borrowing base then in effect, which is initially $250 million. There are semiannual borrowing base redeterminations in April and October, starting in October 2012.
Any borrowing base increase requires the consent of all lenders, the 8-K said.
As of Feb. 28, the outstanding balance under the credit facility was $147.5 million, leaving $102.5 million of borrowing capacity available under the facility, which comes due on Jan. 1, 2017.
Borrowings bear interest at Libor plus 175 basis points to 275 bps. There is a commitment fee of 37.5 bps to 50 bps.
At the end of February, the commitment fee was 50 bps and the interest rate margin was 225 bps on Libor loans.
Northern Oil and Gas is required to maintain a ratio of debt to EBITDAX of no greater than 4.0 to 1.0, a current ratio of no less than 1.0 to 1.0 and a ratio of EBITDAX to interest expense of no less than 3.0 to 1.0.
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