Carrizo Oil & Gas completed its semi-annual borrowing base redetermination, resulting in a borrowing base of $600.0 million, down from $685.0 million previously. Wells Fargo served as administrative agent.

The reduction in the borrowing base resulted primarily from a bank price deck significantly below the one used in the prior redetermination.

In connection with the redetermination, the company’s net debt to adjusted EBITDA covenant was removed, while a secured debt to adjusted EBITDA covenant of no more than 2.0x and an adjusted EBITDA to interest expense covenant of no less than 2.5x were added. For the first quarter, the ratios of secured debt to adjusted EBITDA and adjusted EBITDA to interest expense were 0.1x and 4.8x, respectively.

The next redetermination of the borrowing base is expected in the fall of 2016.

As of March 31, 2016, Carrizo had total debt outstanding of $1.285 million and cash and cash equivalents of $2.2 million. Net debt to adjusted EBITDA was 2.9x for the first quarter. As of April 29, 2016, Carrizo had $51 million drawn on the facility.