PetroQuest Energy entered into a commitment letter providing the company with a four-year multi-draw term loan facility in the aggregate principal amount of $50 million.

According to a related term sheet, JPMorgan Chase served as administrative agent for the lender group. J.P. Morgan Securities served as lead arranger.

The commitment letter expires if the commitment facility does not close on or before 11:59PM PST on October 21, 2016. The company expects that the commitment facility will be secured by a first priority and perfected lien and security interest on substantially all of its, and certain of its subsidiary guarantors’, property and will replace the company’s existing first lien bank credit facility, under which its borrowing base is currently $0.

Lafayette, LA-based PetroQuest Energy is an independent energy company engaged in the exploration, development, acquisition and production of oil and natural gas reserves in East Texas, Oklahoma, South Louisiana and the shallow waters of the Gulf of Mexico.