Northern Oil and Gas Inc.'s (NYSE MKT: NOG) bank syndicate group has reaffirmed and maintained the existing $550 million borrowing base under Northern's revolving credit facility during the semi-annual redetermination period.
In addition, the bank group agreed to amend certain financial covenants. The 4.0x total debt to EBITDAX covenant was removed and replaced with a secured debt to EBITDAX ratio. The new covenant requires Northern to maintain a ratio of secured debt to EBITDAX of no greater than 2.5 to 1.0.
The next redetermination of the borrowing base is scheduled for Oct. 1.