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Legacy Reserves LP
Legacy Reserves LP Announces Extension of Credit Agreement
MIDLAND, Texas, March 27, 2009 (GLOBE NEWSWIRE) -- Legacy Reserves LP (Nasdaq:LGCY) announced today that it has entered into a new three year, $600 million secured revolving Credit Agreement with its Administrative Agent, BNP Paribas, its Syndication Agent, Wachovia Bank, N.A., a Wells Fargo Company, and its Documentation Agent, Compass Bank, along with a syndicate of banks. The initial borrowing base is $340 million, which is scheduled to be redetermined every six months starting October 2009. As of March 26, 2009, Legacy had $300 million of debt outstanding under the Credit Agreement, leaving $40 million available. The LIBOR interest rate margin ranges from 2.25% to 3.0% which is 0.75% higher than the previous Credit Agreement which has been restated and amended. The commitment fee on unused capacity has been increased to 0.5%. Legacy will initially be paying 3.0% over one month LIBOR, which is currently 0.52%, for an interest rate of approximately 3.5% which resets monthly. Legacy has LIBOR interest rate swaps in place with average fixed rates of 3.05% and terms expiring April through November of 2013 on $264 million of its debt.