Sanchez Energy Increase Borrowing Base to $95MM
Sanchez Energy announced that it received commitments from its lending group to increase its available borrowing base under its $250 million first lien revolving credit facility from $27.5 million to $95 million effective immediately. Sanchez said the company’s second lien credit agreement remains unchanged.
Michael G. Long , Sanchez’s senior vice president and chief financial officer, reported, “Our strong reserve growth and increased percentage of proved developed reserves has allowed a significant expansion of our available borrowing base under our revolving credit facility. That available amount has increased from $27.5 million to $95 million. Under the terms of our second lien credit facility, the lenders’ $50 million commitment would have expired on January 31, 2013 unless drawn by such date. We drew the available $50 million on January 31, 2013 leaving us with $50 million of outstanding debt and approximately $95 million of cash on hand as a result.
Houston, TX-based Sanchez Energy is an independent exploration and production company currently focused on the prolific Eagle Ford Shale trend of south Texas.