Eagle Rock Energy Partners announced that its lender group has unanimously approved an amendment to the partnership’s credit facility that allows for greater liquidity and certain covenant relief through the second quarter of 2014. The amendment, among other items, provides for an increase in the midstream component of the facility’s total borrowing base and provides for an increase in the total leverage ratio and senior secured leverage ratio for the quarter ended June 30, 2014.
According to an 8-K filing, the lender group was led by Wells Fargo as administrative agent.
The partnership also announced that effective June 1, 2014, the upstream component of the borrowing base will decrease from $380 million to $330 million as part of the partnership’s regular semi-annual redetermination by its commercial lenders.
After giving effect to the amendment and the redetermined upstream component of the borrowing base, the partnership’s total borrowing base as of June 1, 2014, will be approximately $819 million, an increase of approximately $5 million from the current borrowing base.