Constellation Energy Partners LLC (CEP) said Monday that it entered into a new $350 million reserve-based revolving credit facility with a syndicate of lenders. The new credit facility matures in November 2012 and has an initial borrowing base of $205 million. It amends, extends, and consolidates the company's existing credit facilities, which were due to mature in next October.
Borrowing spreads under the new credit facility, which change depending upon the level of borrowings outstanding, will range from 2.50% to 3.50% under a Libor-based borrowing option and from 1.50% to 2.50% under an alternate base rate borrowing option. The company will also pay a 0.50% commitment fee on unborrowed funds.
The new credit facility includes customary financial and other restrictive covenants, among which is a requirement that the company maintain a ratio of total net debt to adjusted EBITDA of less than 3.75 times through September 30, 2010 and 3.50 times thereafter.
The company's current debt outstanding is $200 million, which gives it $5 million borrowing capacity at the initial $205 million borrowing base. The borrowing base is subject to routine redetermination semi-annually.
The syndicate of lenders includes The Royal Bank of Scotland plc as administrative agent, BNP Paribas and The Bank of Nova Scotia as joint lead arrangers and co-syndication agents, together with Wells Fargo Bank, N.A. and Société Générale. RBS Securities Inc. acted as joint lead arranger and sole book runner on the financing.
According to Stephen Brunner, President and Chief Executive Officer of Constellation Energy Partners, "Our new credit facility provides us with the financial support and flexibility needed to take advantage of the opportunities that lie ahead for CEP. We appreciate the confidence our lenders have demonstrated in our assets and our team by continuing to work as an integral part of our capital structure."
CEP closed Friday's regular trade at $3.42, down from the previous close of $3.58, on 288,300 shares.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.