LINN Energy announced it has completed its Fall 2015 borrowing base redetermination and entered into key amendments which provide additional flexibility in the current market environment.

Following the redetermination, LINN’s maximum borrowing availability under its credit facility has been reduced from $4.05 billion to $3.6 billion and the borrowing base under the credit facility for Berry Petroleum has been reduced from $1.2 billion to $900 million, including $250 million of restricted cash previously posted as collateral with Berry’s lenders.

According to a related 8-K filing, the lender groups for both LINN Energy and Berry Petroleum were led by Wells Fargo as administrative agent.

The company’s lenders have also approved a potential combination of the LINN and Berry credit facilities under certain conditions, subject to a combined borrowing base of $4.05 billion. LINN currently has undrawn capacity of approximately $790 million, assuming borrowings outstanding as of September 30, 2015.

As part of the redetermination, LINN and Berry each entered into an amendment to their respective credit facilities. Among other items, the amendments include the ability to incur junior lien indebtedness, a reduction in the minimum interest coverage ratio and increased ability for LINN to divest assets which do not contribute to its borrowing base. Under the terms of the amendments, LINN and Berry may incur up to $4 billion and $500 million, respectively, of junior lien indebtedness, in each case subject to borrowing base reductions in certain circumstances. In addition, the Company’s minimum interest coverage ratio has been reduced from 2.5x to 2.0x through December 31, 2016, increasing to 2.25x through June 30, 2017, and then returning to 2.5x on July 1, 2017.