CSI Compressco (CSI) completed an amendment to its credit agreement with its lenders. The amendment provides additional flexibility for CSI under the financial leverage ratio covenant applicable to the revolving credit facility.
The amendment reduced the maximum aggregate lender commitments under the credit agreement from $400 million to $340 million, among other amendments. As of March 31, 2016 CSI had $234 million outstanding on the revolver.
According to a related 8-K filing, the lender group, which includes Wells Fargo, JPMorgan Chase, Capital One and CIT Bank, was led by Bank of America, serving as administrative agent.
“We are pleased with the outcome of this amendment process. We believe it is prudent to obtain flexibility with our revolving credit facility given the persistent weak industry environment.” said Timothy A. Knox, president of CSI Compressco. “We are very appreciative of the support from our lending group, arranged by Bank of America Merrill Lynch. This amendment provides the Partnership with enhanced ability to navigate through an uncertain energy marketplace.”
Midland, TX- based CSI Compressco is a provider of compression services and equipment for natural gas and oil production, gathering, transportation, processing and storage.