The borrowing base under Eagle Rock Energy Partners LP’s (Nasdaq: EROC) senior secured credit facility has been decreased from $320 million to $270 million as part of the Partnership's regularly scheduled semi-annual redetermination by its commercial lenders.
The Partnership's borrowing base is redetermined semi-annually, effective April 1 and Oct. 1. The Partnership is in compliance with the financial covenants under its senior secured credit facility. As of April 1, the Partnership's total liquidity was $180 million, comprising $108 million of availability under its senior secured credit facility and 3.1 million Regency units valued at close of market on April 1 at $72 million.
Joseph A. Mills, the Partnership's chairman and CEO, stated, "With the recent downturn in commodity prices, we had anticipated that we would see a reduction in our borrowing base. Despite the decrease, Eagle Rock still has ample liquidity, a robust hedge portfolio, and a healthy leverage ratio."