Swift Energy announced today that in conjunction with the normal semi-annual review, its ten member bank group has re-determined the Company's borrowing base and commitment amount under its revolving credit facility to be $300 million, effective May 1, 2009. This is a decrease from the previous borrowing base of $400 million and commitment amount of $350 million.
The Company has historically kept draws under its credit facility borrowing base at a level well below the established commitment amount and intends to fund 2009 capital expenditures primarily with cash flows from operations. The amount outstanding on the Company's credit facility as of March 31, 2009 was $236.7 million.
In line with current market conditions, pricing was amended to establish the Eurodollar Rate borrowing margins at escalating rates of between 200 and 350 basis points and the Alternative Base Rate borrowing margins at escalating rates of between 100 and 250 basis points. The Commitment Fee associated with the unfunded portion of the borrowing base is set at 50 basis points. The effect of this increased pricing will be reflected in revised guidance provided in conjunction with the Company's first quarter 2009 earnings release on May 7, 2009.
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