According to an 8-K filing, Citibank served as administrative agent on an upsize of $75 million for Roan Resources’ revolving credit facility, increasing the borrowing base to $750 million.
The amendment also:
- Permits certain additional liens to be made in connection with the incurrence or issuance of any permitted additional debt not to exceed $350 million, subject to delivery of an intercreditor agreement
- Provides that there will be no reduction of the borrowing base in connection with the issuance of any 2019 interim debt, except for amounts exceeding the first $400 million in principal of such unsecured 2019 interim debt and $250 million in principal of such secured 2019 interim debt
- Provides that 100% of the net proceeds of the 2019 interim debt will be used to prepay the principal amount of loans and letters of credits under the credit agreement
- Updates the commitment allocations schedule to reflect an exiting lender
As of the end of the fourth quarter 2018, Roan had $6.9 million of cash on the balance sheet and $514.6 million drawn on its revolving credit facility, for total net debt (non-GAAP) of $507.7 million.
Roan currently has no other outstanding debt or letters of credit, which provides the company with approximately $240 million of available liquidity as of December 31, 2018, on a pro forma basis, which fully funds the 2019 development program.
Headquartered in Oklahoma City, Roan is an independent oil and natural gas company focused on the development, exploration and acquisition of unconventional oil and natural gas reserves in the Merge, SCOOP and STACK plays of the Anadarko Basin in Oklahoma.