Warren Resources announced that the syndicate of lenders underwriting the company’s $300 million senior secured credit facility has increased the conforming borrowing base to $175 million as a result of completing the spring 2014 semi-annual re-determination. In addition, the credit facility also has been amended to provide Warren with access to a new $10 million sublimit for swing line loans.
According to a related 8-K filing, Bank of Montreal, acted as administrative agent and LC issuer and BMO Harris Financing, as the swing line lender. Two of Warren’s wholly owned subsidiaries, Warren Resources of CA and Warren E&P, as guarantors.
As of June 9, 2014, Warren has $81.5 million of debt outstanding under its credit facility, leaving $93.5 million available. The next borrowing base redetermination is scheduled for November 2014.
Stewart Skelly, Warren’s vice president and chief financial officer, commented, “We are pleased to announce a $10 million increase in our borrowing base to $175 million. We appreciate the continuing support of our lender group and, in particular, the efforts and commitment from our syndicate agent bank, the Bank of Montreal.”
Warren Resources is an independent energy company engaged in the acquisition, exploration, development and production of domestic oil and natural gas reserves.