Alta Mesa Holdings announced its lenders completed the semi-annual redetermination of the company’s borrowing base. Pursuant to the terms of the reserve-based revolving line of senior credit facility, the borrowing base has been redetermined by the lenders to $300 million.

The credit facility is provided by a syndicate of 10 banks agented by Wells Fargo Bank, and co-agented by Union Bank. Morgan Stanley acted as sole arranger for the second lien facility.

Simultaneously, the company closed a $125 million second lien senior secured term loan with Morgan Stanley Energy Capital. Net proceeds of approximately $121 million from the second lien facility loan were used to repay a portion of the outstanding borrowings under the Company’s senior revolving credit facility. After giving effect to the repayment, the amount drawn under the company’s senior revolving credit facility was approximately $225 million. Maturity of the company’s senior credit facility has been extended to October 13, 2017 and second lien term facility is April 15, 2018.

Hal Chappelle, Alta Mesa’s CEO, said, “This new second lien loan has materially enhanced our current liquidity position and we are very pleased to welcome Morgan Stanley as a strong and knowledgeable financial partner, and look forward to working with them to continue our success.”

Alta Mesa is in compliance with all of the financial covenants associated with the credit facility and the next scheduled redetermination of the borrowing base is in November of this year.

David Lazarus, managing director, Morgan Stanley Energy Capital, stated, “We are delighted to be able to meet the company’s additional liquidity needs as this facility fits well within our focus of providing flexible debt solutions to the independent oil and gas producer space. It’s a pleasure to be a new capital provider to a company of as high a caliber as Alta Mesa, and we look forward to continuing to grow with the company.”

Alta Mesa Holdings is a privately held company engaged primarily in onshore oil and natural gas acquisition, exploitation, exploration and production whose focus is to maximize the profitability of our assets in a safe and environmentally sound manner.