Memorial Production Partners (MEMP) amended its revolving credit facility and completed the semi-annual redetermination of its credit facility borrowing base.

According to a related 8-K filing, Wells Fargo served as administrative agent, and JPMorgan Chase Bank was syndication agent. Royal Bank of Canada, Citizens Bank, MUFG Union Bank and Comerica Bank were co-documentation agents. Wells Fargo Securities and J.P. Morgan Securities were co-lead arrangers and joint bookrunners.

The redetermination resulted in a revised borrowing base of $925 million, a decrease of 21% from the previous level of $1,175 million.

In addition, MEMP and the commercial bank lending group have agreed to amend certain terms of MEMP’s revolving credit facility. The new terms include the addition of maximum first lien secured leverage covenant of 3.25x, and additional restrictions on future cash distributions, including:

• If the total debt ratio is greater than 4.0x, the partnership may only make a distribution if it has availability subject to certain liquidity and financial tests and in any such case up to a maximum total cash distribution amount of $4.15 million per quarter.
• If the total debt ratio is less than 4.0x, the partnership may only make a distribution if it has availability, pro forma for such distribution, of at least 15% of the borrowing base, but if it satisfies such tests then cash distributions are not limited to any total amount

John A. Weinzierl, chairman and chief executive officer of the general partner of MEMP commented, “I would first like to thank the 28 banks in MEMP’s credit facility for their continued support during this volatile period for the entire industry. The downward revision on the borrowing base is largely attributable to the deterioration of commodity prices and was in-line with our expectations. Giving effect to the credit facility amendment announced today, along with significant cash flow generation throughout the year, MEMP should have the liquidity it needs to execute its strategies to reduce the partnership’s total leverage, which we believe will benefit all of MEMP’s stakeholders.”