Oil and natural gas exploration and production company Chaparral Energy closed on a new $400 million credit facility. The initial borrowing base is $285 million, a $60 million increase compared to its previous borrowing base. The company anticipates its outstanding borrowings under the new credit facility at the end of 2017 will be $127 million.

The agreement was secured by a lien on substantially all of the Chaparral’s tangible and intangible assets, including its oil and gas properties. The loans were guaranteed by its direct and indirect subsidiaries

The applicable margin for loans under the facility will be determined based on borrowing base utilization and ranges from 2.50% to 3.50% per annum for LIBOR loans and 1.5% to 2.5% per annum for base rate loans. The borrowing base under the agreement will be re-determined semi-annually, in May and November, by the lenders, in accordance with the lenders’ customary practices for oil and gas loans.

According to a related 8-K filing, JPMorgan Chase acted as administrative agent for the credit facility.

Chaparral plans to use the facility to finance its acquisition of acreage in Kingfisher County, OK from a private seller for $60 million in cash, subject to customary post-closing adjustments. The deal is expected to close in January 2018.