Sanchez Energy announced that it has received commitments from its lending group to change the borrowing base under its $1.5 billion first lien revolving credit facility from $550 million to $500 million with an unchanged elected commitment of $300 million. With nothing drawn on the borrowing base, the company has significant headroom to its 2.25x senior secured leverage covenant.
According to a related 10-Q filing, Royal Bank of Canada served as administrative agent, Capital One was syndication agent, Compass Bank and SunTrust Bank were documentation agents, and RBC Capital Markets was sole lead arranger and sole book runner.
Gleeson Van Riet, Sanchez Energy’s chief financial officer, reported, “We are pleased with the results of our Fall 2015 Borrowing Base Redetermination and are grateful for the continued support of our entire bank group. Our banking syndicate has consistently assisted us in our efforts to create value for our shareholders.”