Mariner Energy announced that the borrowing base for its $1.0 billion secured revolving credit facility has been reaffirmed by its bank group at $850 million, its existing level since June 2008.
The credit facility is provided by a syndicate of 17 banks led by Union Bank of California, N.A., and BNP Paribas. As of March 26, 2009, Mariner had approximately $220 million available under the credit facility. The facility's borrowing base is redetermined semi-annually.
In connection with the affirmation, Mariner agreed to a 1.0% increase to interest on outstanding borrowings and an increase to 0.5% for the commitment fee on unused capacity under the credit facility. Also, 100% lender approval will be required for a borrowing base in excess of $800 million at the next redetermination expected in August 2009.
"We appreciate the support from our banks in these uncertain times. In our view this reflects our strong performance in 2008 and our conservative business model," said Scott Josey, Chairman, Chief Executive Officer and President of Mariner Energy.
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