Callon Petroleum Cinches $250MM Credit Agreement

Callon Petroleum Company has completed a $250 million Second Amended and Restated Senior Secured Credit Agreement with Union Bank of California, N.A. as the sole arranger and administrative agent, Regions Bank as syndication agent and Capital One, N.A. as documentation agent.

The Credit Agreement provides an initial borrowing base of $70 million, which will be reviewed and re-determined on a semi-annual basis. This new agreement provides Callon with an additional $20 million of liquidity over the facility it replaced, which had a $50 million borrowing base. There are no borrowings outstanding under the Credit Agreement, however, the company does have a $15 million letter of credit outstanding which reduces availability. The Credit Agreement matures on September 25, 2012.