Resolute Energy updates on loan and credit facility agreements

Resolute Energy Corp. (NYSE: REN) has entered into definitive agreements with respect to a $150 million second lien secured term loan with Highbridge Principal Strategies and has also amended its senior revolving credit facility. Funding of the amounts under the second lien facility was scheduled for Dec. 31, 2014.

The company's second lien facility matures no later than November 2019 and permits Resolute to issue up to $200 million of additional second lien debt for 60 days following the initial closing. In connection with the second lien financing transaction, the company also amended its senior revolving credit facility. The initial conforming borrowing base under the amended senior revolving credit facility was set at $330 million and certain other amendments were made, including eliminating the total debt-to-EBITDA covenant and conforming the covenant package in the senior revolving credit facility to that of the new second lien facility.

Net proceeds from the second lien facility loan, anticipated to be $134 million after payment of transaction-related fees, expenses, and discounts, will be used to repay a portion of the outstanding borrowings under the company's senior revolving credit facility. The new second lien term loan has materially enhanced the company's current liquidity position. 

BMO Capital Markets acted as sole arranger for the second lien facility. 

Resolute's producing properties are located in the Paradox Basin in Utah, the Permian Basin in Texas, and New Mexico, and the Powder River Basin in Wyoming. The company also owns exploration properties in the Permian Basin of Texas and in the Big Horn and Powder River basins of Wyoming.

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