Sanchez Production Partners amends $500 million facility, ups pricing

By Tali Rackner

Norfolk, Va., July 6 – Sanchez Production Partners LP entered into a fourth amendment to its third amended and restated credit agreement with Royal Bank of Canada as administrative agent and collateral agent, according to an 8-K filing with the Securities and Exchange Commission.

Under the July 5 amendment, pricing on the $500 million facility was increased to Libor plus 225 basis points to 325 bps, depending on usage. The commitment fee was also raised to 50 bps.

The revisions are in connection with the company’s acquisition of Sanchez Energy Corp.’s 50% interest in Carnero Gathering, LLC, a joint venture that is 50% owned by Targa Resources Corp., according to a press release.

The company also amended the facility to stipulate the conditions for investments in joint ventures such as Carnero Gathering, include adjusted EBITDA received for investments in joint ventures in the calculation thereof and implement a restriction on retaining more than $10 million in cash, among other changes.

Sanchez Production is a Houston-based company that focuses on the acquisition, development, and production of oil and natural gas properties.

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