Epsilon Energy closed a new and revised senior secured reserve-based revolving credit facility with Frost Bank as the administrative agent and Frost Bank and Texas Capital Bank as lenders. The new credit facility replaces the company’s previous credit facility.
Term highlights of the Credit Facility:
- Epsilon Energy USA and Epsilon Energy as co-borrowers
- Four-year term (matures October 8, 2029)
- Initial borrowing base and commitments of $47.5 million (supported by the company’s existing U.S. upstream assets), which will be redetermined and increased on the closing of the acquisition of the Peak companies later in Q4/25 (to include the acquired assets).
- Semi-annual redeterminations
- Interest is charged on drawdowns at the 3-month term SOFR rate plus a margin of 3% to 4% (depending on facility utilization), payable quarterly
The new credit facility will initially fund at the same time as the closing of the Peak companies acquisition. Proceeds will go to repaying Peak’s existing term loan, with an estimated balance at closing of $49.6 million.
“The new and revised credit facility adds commitment capacity and tenor and enables the company to comfortably close the acquisitions announced in August while maintaining a strong balance sheet and liquidity going forward,” Andrew Williamson, chief financial officer of Epsilon, said.
