Chesapeake Energy said Monday its banking syndicate reaffirmed the independent producer’s senior secured revolving credit facility’s $4 billion borrowing base, Kallanish Energy learns. To maintain the base, Chesapeake agreed to pledge additional assets as collateral, while the next scheduled borrowing base redetermination review was postponed until June 2017. The amendment includes a collateral value coverage test, which may limit Chesapeake s borrowing capacity if its collateral coverage ratio falls below 1.25 times, tested as of March 31, 2017. The amendment provides temporary covenant relief, with the facility s senior secured leverage ratio suspended until September 2017, then reverting to 3.5 times through December 2017, and decreasing to 3 times thereafter. In addition, the amendment reduces the interest coverage ratio to 0.65 time from 1.1 times through March 2017, after which it will increase to 0.70 times through June 2017, then reverting to 1.2 times in September 2017 an
http://www.shaledirectories.com/blog/chesapeake-secures-financing-june-2017/
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