Cabot Oil & Gas announced the completion of a new $500 million unsecured Revolving Credit Facility with a three-year term. Additionally, the Company announced that the borrowing base, which governs debt limits under the facility, now totals $1.35 billion.
"Both the credit facility and the borrowing base reflect an increase of $150 million from levels under our previous facility," said Dan O. Dinges, Chairman, President and CEO. "What speaks highly of Cabot's strength is that even in this difficult financing market, we had four new institutions provide commitments."
Dinges added, "While we remain committed to stay within cash flow for our investment program, this new facility affords us substantial flexibility to weather these economic conditions. I would also note that with the new borrowing base, Cabot has over $450 million of borrowing capacity at the present time."
J.P. Morgan Securities Inc. and Banc of America Securities LLC were the joint book runners and co-lead arrangers for the facility. J.P. Morgan Chase Bank, N.A. will serve as administrative agent.
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