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QEP Resources Announces Amendment to Credit Agreement
June 8, 2020
Source: Globe Newswire
QEP Resources, Inc. (NYSE:QEP) (QEP or the Company) announced today that it has entered into an amendment to its existing credit agreement with Wells Fargo Bank, National Association, and other lenders (the Credit Agreement).
"The amended credit facility increases our liquidity by more than $500 million and is expected to provide us with the necessary financial flexibility to execute our ongoing business plan. We believe that the amendment strengthens our financial position as we navigate through this challenging environment. We appreciate our banks working closely with us in connection with this amendment and their continued support to our organization, especially given the current market environment," commented Tim Cutt, President & CEO of QEP.
The amendment announced today provides for, among other things:
- a change to the leverage ratio covenant to permit a maximum ratio of net priority guaranteed debt to consolidated EBITDAX of 2.50 to 1.00 as of the last day of each fiscal quarter of the Company;
- a change of the present value debt ratio covenant to require a minimum present value to net priority guaranteed debt ratio of at least 1.50 to 1.00 at all times;
- the ability to repurchase outstanding senior notes with up to $500 million of loan proceeds and certain other amounts;
- the ability to issue subsidiary guarantees of up to $500 million of unsecured debt, with such guarantees being subordinated to the obligations under the Credit Agreement;
- a reduction in aggregate commitments from $1.25 billion to $850 million;
- the requirement that the Company’s material subsidiaries guarantee the obligations under the Credit Agreement and certain swap obligations and bank product obligations;
- the revision of the applicable rate for all borrowings under the Credit Agreement to be based on the utilization under the Credit Agreement rather than the Company’s leverage ratio; and
- amendments of certain of the negative covenants and other provisions of the Credit Agreement, as more specifically set forth in the amendment.
Except as amended by the amendment, the remaining terms of the existing Credit Agreement remain in full force and effect. Additional detail is available in our Current Report on Form 8-K filed with the Securities and Exchange Commission.
About QEP Resources, Inc.
QEP Resources, Inc. (NYSE: QEP) is an independent crude oil and natural gas exploration and production company focused in two regions of the United States: the Southern Region (primarily in Texas) and the Northern Region (primarily in North Dakota). For more information, visit QEP's website at: www.qepres.com.
Contact
Investors/Media:
William I. Kent, IRC
Director, Investor Relations
303-405-6665
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