CrownRock, L.P. Announces New Credit Agreement with Extended Maturity Date, Increased Borrowing Base and Commitment Size, and Decreased Interest Margins
MIDLAND, TX—February 11, 2019 /PRNewswire/—CrownRock, L.P . (“CrownRock” or the “Partnership”) announced today that it has entered into an amended and restated credit agreement with respect to the senior secured revolving credit facility (the “Facility”). The agreement extends the maturity date of the Facility until February 8, 2024, increases the borrowing base by 19% to $850 million and increases the maximum commitments of the lenders from $1 billion to $2 billion. Additionally, the interest rate margins on borrowings under the Facility decreased by 100 basis points. The increase in the borrowing base amount reflects the significant reserve growth from the Partnership’s existing Midland Basin assets.
CrownRock has initially elected an aggregate commitment amount of $600 million, an increase of $100 million from the previous elected commitment amount. The Facility is led by JPMorgan Chase Bank, N.A., as Administrative Agent, and co-arranged by JPMorgan Chase Bank, N.A., BMO Capital Markets Corp., Capital One, National Association, Citibank, N.A., MUFG Union Bank, N.A., PNC Bank, National Association, TD Securities (USA) LLC and Wells Fargo Securities LLC. The bank syndicate includes three new lending institutions for a total of 16 participating banks. CrownRock currently has no outstanding borrowings under the Facility.
CrownRock has pledged substantially all of its producing oil and natural gas properties to secure the repayment of indebtedness under the revolving credit facility.
About CrownRock, L.P.
CrownRock is an independent oil and natural gas company headquartered in Midland, Texas engaged in the acquisition, development, exploitation and exploration of oil and natural gas properties. The Company’s assets are located in Texas, New Mexico and Utah, and its operations are primarily focused on the development of its core Permian Basin assets.
Source: CrownRock, L.P.
Curt F. Kamradt, CPA, CGMA
VP — Finance & Chief Accounting Officer CrownQuest Operating, LLC
Direct Ph.: 432-818-0344