J.P Morgan led and served as administrative agent on a new $750 million reserve-based credit facility for independent oil and gas company Bonanza Creek Energy. The facility includes an initial $350 million borrowing base due December 2023.
The new facility replaces Bonanza Creek’s previous borrowing base of $191.7 million and is subject to semi-annual redeterminations, with the next redetermination scheduled for the second quarter of 2019. J.P Morgan was joined on the facility by a syndicate of eleven other banks, including seven new lenders.
As of September 30, 2018, Bonanza Creek had $24 million in cash on hand and no outstanding borrowings.
Brant DeMuth, Bonanza Creek chief financial officer, commented, “The closing of our new credit facility marks another significant step in the company’s evolution and is a reflection of our people, reserve growth and continued operational success. I would also like to thank our bank group for its support in this endeavor, and we look forward to working with our new syndicate in the future. The significant increase in our facility provides the company with over $350 million in liquidity and the flexibility to execute on our returns-focused strategy.”