JPMorgan Agents Callon Petroleum Expanded Credit Facilities
Callon Petroleum announced the closing of an amended $500 million revolving credit facility and a new $125 million senior secured second lien term loan facility. The company entered March 11, 2014 into the amended credit facility with JPMorgan Chase Bank acted as administrative agents. The facility has commitments from ten lending institutions.
Each facility will have a maturity date in 2019. Callon intends to use a portion of the net proceeds from an initial draw of the second lien facility to redeem the remaining $48.5 million principal amount of its outstanding 13% senior notes due 2016.
The amended facility contains the following key provisions:
In conjunction with the amended credit facility, the company entered into the second lien facility with JPMorgan Chase Bank as administrative agent. The second lien facility is structured as a multiple-advance, term loan facility with commitments from five institutions. The initial draw of the second lien facility will be used in part to redeem the outstanding principal amount of the senior notes. Key provisions of the second lien facility include:
“We are pleased to have secured these facilities which will reduce our cost of capital and significantly enhance our financial flexibility, supporting our long-term capital program and allowing us to take advantage of other future growth opportunities,” said Fred Callon, Chairman and CEO. “These facilities represent a strong show of support from our new and existing lenders and we appreciate their continued confidence in Callon.”