Eagle Rock amends credit facility

Eagle Rock Energy Partners LP

Eagle Rock Energy Partners LP (Nasdaq:EROC) has amended its five-year senior secured credit facility originally entered into on June 22, 2011 with a syndicate of banks led by Wells Fargo NA as  administrative agent, and Bank of America NA and Royal Bank of Scotland plc as co-syndication agents.

Current commitments total $320 million, with the ability to increase commitments up to $1.2 billion. The facility matures in October 2019, extended from Eagle Rock's former senior secured credit facility, as amended, which was scheduled to mature in June 2016. This amendment coincides with the semi-annual redetermination of the borrowing base, and the next redetermination will be April 2015.

The Regency Energy Partners units that the partnership received as part of its midstream business contribution are not collateralized under the credit facility agreement.

The amended credit agreement is a more traditional reserve-based facility for a pure-play upstream MLP, and includes revised covenants and improved fee pricing, as follows:

  • Total Leverage Ratio of no greater than 4.0x LTM EBITDA (increases to 4.5x LTM EBITDA for the two periods following an acquisition above $50M)
  • Current Ratio of no less than 1.0x
  • Removal of Senior Secured Leverage Ratio covenant
  • Removal of Interest Coverage Ratio covenant
  • Improved fee pricing by 25 basis points on all tranches except the
  • Commitment Fee, which remains relatively the same

Eagle Rock is a growth-oriented master limited partnership engaged in (a) the exploitation, development, and production of oil and natural gas properties and (b) ancillary gathering, compressing, treating, processing and marketing services with respect to its production of natural gas, natural gas liquids, condensate and crude oil.


Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...