SemGroup gets forbearance from loan lenders regarding defaults

By Sara Rosenberg

New York, Sept. 22 - SemGroup Energy Partners LP entered into a forbearance agreement through Dec. 11 with its credit facility lenders regarding certain defaults, according to an 8-K filed with the Securities and Exchange Commission Monday.

Under the agreement, the company's revolver was downsized to $300 million from $350 million and additional borrowings under the facility are not allowed to be made during the forbearance period. As of Sept. 18, there was $198.1 million drawn under the revolver and $250 million drawn under a term loan.

In addition, during the forbearance period, pricing on the credit facility can range from Libor plus 425 basis points to 525 bps depending on total leverage.

The forbearance was obtained on Sept. 18.

Lenders were paid a 25 bps fee.

Wachovia is the administrative agent on the deal.

The forbearance is subject to certain conditions, including periodic deliverables and minimum liquidity and maximum cash flow disbursement requirements.

SemGroup is a Tulsa, Okla., owner and operator of midstream energy assets.

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