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."