Concho Resources announced that its bank group has completed a semi-annual redetermination of the Company's borrowing base for its $1.2 billion secured revolving credit facility and that the borrowing base has been reaffirmed at $960 million, its existing level since July 2008.
The credit facility is provided by a syndicate of 22 banks led by JP Morgan Chase Bank, N.A. and Bank of America, N.A. In connection with the affirmation, Concho agreed to amend the credit facility to (i) increase the Eurodollar rate margin from a range of 1.25% to 2.75% to a range of 2.00% to 3.00% (depending on the then-current borrowing base usage), (ii) increase the alternate base rate margin from a range of 0.00% to 1.25% to a range of 1.125% to 2.125% (depending on the then-current borrowing base usage), and (iii) increase the unused commitment fee rate from a range of 0.25% to 0.50% to a flat rate of 0.50%.
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