Comstock Resources obtained commitments from a syndicate of 13 banks for a new five year reserve-based revolving credit facility with an initial borrowing base of $700 million. BMO Capital Markets arranged the facility, which will be administered by Bank of Montreal.
The new facility is subject to customary closing conditions and will become effective concurrent with the closing of the contribution of certain oil and gas assets by Arkoma Drilling and Williston Drilling, entities owned by Jerry Jones and his family. The issuance of Comstock common stock in connection with the Jones contribution has been submitted to the company’s stockholders for approval at its upcoming annual meeting to be held on August 10, 2018.
The facility borrowing base will be re-determined on a semi-annual basis and be secured by substantially all of Comstock’s. Borrowings under the facility will bear interest, at the company’s option, at LIBOR plus 2% to 3% or a base rate plus 1% to 2%, in each case depending on the utilization of the borrowing base. Comstock will pay a commitment fee of 0.375% to 0.5% on the unused borrowing base.
“We are excited to have completed this part of our refinancing plan and appreciate the support from Bank of Montreal and the other twelve banks comprising our new bank group. We are looking forward to the August 10th annual meeting when our shareholders will vote on the Jones contribution, the cornerstone of our refinancing plan”, said M. Jay Allison, Comstock chairman and CEO.
Based in Frisco, TX, Comstock Resources is an independent energy company engaged in the acquisition, development, production and exploration of oil and natural gas properties.
