ARP secures amendment to credit facility and borrowing base redetermination

Atlas Resource Partners LP (NYSE: ARP) has entered into an amendment to its revolving credit facility and has completed its semi-annual redetermination of its credit facility borrowing base, resulting in a revised borrowing base of $700 million, a decrease of 6.7% from the previous level. 

To provide increased flexibility as a result of the current commodity price environment, the Partnership has reached an agreement with its commercial bank lending group to amend certain terms of its revolving credit facility, including improved terms on its leverage covenants.

The new terms include suspension of a maximum total leverage covenant until the first quarter of 2017, as well as new maximum total leverage covenants in future periods; including 5.75x beginning in first-quarter 2017, 5.50x beginning in third-quarter 2017, 5.25x beginning in first-quarter 2018, and 5.00x beginning in second-quarter 2018 and thereafter; elimination of senior secured leverage covenant; addition of maximum first lien secured leverage covenant of 2.75x; and ability to add additional subordinated secured debt.

The Partnership had a total leverage ratio of approximately 5.1x as of third-quarter 2015. The next borrowing base redetermination is expected to occur in May 2016. As part of the amendment of the credit facility, the Partnership has agreed to adjust the Partnership's common unit distribution to $0.15 per annum, which the Partnership expects to pay on a monthly basis. 

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

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...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...