TULSA, Okla., May 26, 2017 (GLOBE NEWSWIRE) — Midstates Petroleum Company, Inc. (NYSE:MPO) (“Midstates” or the “Company”) today announced that the Company has amended its Senior Secured Credit Agreement effective May 24, 2017.
The First Amendment to Senior Secured Credit Agreement, among other things:
- Removed the requirement to maintain a cash collateral account at the Administrative Agent in the amount of $40 million, increasing liquidity by $40 million;
- Removed certain negative covenants, such as the limitations on capital expenditures and the 20% of borrowing base minimum liquidity requirement;
- Moved the first scheduled borrowing base redetermination from April 2018 to October 2017;
- Amended the required mortgage threshold from 95% of the discounted present value of future net income utilizing a 9% discount rate attributable to proved reserves to 90%;
- Amended the threshold amount for which the Borrower is required to provide advance notice to the Administrative Agent of a sale or disposition of oil and gas properties which occurs during the period between two successive redeterminations of the borrowing base;
- Amended the required ratio of total net indebtedness to EBITDA that the Borrower would be required to maintain to (x) 2.25:1.00 for the fiscal quarters ending on December 31, 2016 and March 31, 2017 and (y) 4.00:1.00 with respect to any fiscal quarter thereafter; and provided for additional covenant flexibility.
Jake Brace, President and Chief Executive Officer commented, “We are very pleased with the amendment to our senior secured credit facility. This amendment offers Midstates additional liquidity and operational and financial flexibility to grow our premier Miss Lime position at the appropriate pace to maximize value for our shareholders.”
About Midstates Petroleum Company, Inc.
Midstates Petroleum Company, Inc. is an independent exploration and production company focused on the application of modern drilling and completion techniques in oil and liquids-rich basins in the onshore U.S. The Company’s operations are currently focused on oilfields in the Mississippian Lime play in Oklahoma and the Anadarko Basin in Texas and Oklahoma.