Mariner Increases Borrowing Base to $950MM

Mariner Energy announced that the borrowing base for its $1.0 billion secured revolving credit facility has been increased to $950.0 million, up from $800.0 million. The credit facility is provided by a syndicate of 18 banks led by Union Bank, N.A., and BNP Paribas. After giving effect to today's increased borrowing base and $4.7 million in outstanding letters of credit, Mariner has approximately $613.0 million available under the credit facility. The borrowing base is scheduled to be redetermined semi-annually. In connection with the latest redetermination, the facility also was amended to, among other things, increase the maximum permitted ratio of total debt to EBITDA (as defined in the credit agreement) to 3.5 to 1.0, up from 2.5 to 1.0.

"We appreciate our bankers' support of Mariner Energy. The increased borrowing base and amended credit agreement provide us added financial flexibility to pursue our growth initiatives and execute our current plans," said Jesus G. Melendrez, Senior Vice President, Chief Commercial Officer and Acting Chief Financial Officer.