New Source confirms change to borrowing base

New Source Energy Partners LP (NYSE: NSLP) has entered into an agreement with the Bank of Montreal (BMO Financial Group), as administrative agent, and the other lenders that are parties to the credit agreement governing the Partnership's revolving credit facility to postpone the April 1 scheduled semi-annual redetermination of the borrowing base until May 1. 

In addition, the borrowing base available under the revolving credit facility was reduced, effective April 8, from $90 million to $84 million, which was the amount of borrowings outstanding as of April 8. The agreement further provides that, prior to the borrowing base redetermination on May 1, the Partnership will not declare or make any distributions on its common units until the total outstanding borrowings under the revolving credit facility is at or below $55 million.

"We have previously stated that we believe the borrowing base under the Partnership's credit facility would be reduced by $20 million to $30 million," said Kristian Kos, chairman and CEO. "The lenders are finalizing their review in order to determine the updated borrowing base. However, we believe the $20 million to $30 million range is still accurate. The agreement with BMO postpones the redetermination by one month, which allows the Partnership more time to secure financing opportunities currently under review."

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

Whitepapers

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...