Synergy Resources Expands Line of Credit to $47 Million
Synergy Resources Corporation, a U.S. oil and gas exploration and production company, has amended its revolving line of credit agreement with an expanded syndicate group comprised of Community Banks of Colorado, Colorado Business Bank and Amegy Bank National.
The amended terms include an increase to $47 million in the borrowing base as compared to $30 million under the prior agreement. The maximum amount of borrowings available to Synergy under the new agreement is $150 million. The maximum amount is subject to certain borrowing base collateral requirements, which will be reviewed by the syndicate group every six months upon issuance of updated reserve reports.
The maximum interest rate on the line of credit is LIBOR plus 3.25%. The term of the line of credit has been extended to mature in November 2016. The company’s long-term debt totaled approximately $3 million at fiscal year-end August 31, 2012.
The company anticipates using the expanded credit line to complete the previously announced acquisition of Orr Energy and fund a portion of its fiscal 2013 CAPEX budget. The company expects to complete the Orr Energy transaction by early December, which is subject to usual closing adjustments and conditions.