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.
About Legacy Reserves LP
Legacy Reserves LP is an independent oil and natural gas limited partnership headquartered in Midland, Texas, focused on the acquisition and development of oil and natural gas properties primarily located in the Permian Basin and Mid-continent regions of the United States. Additional information is available at www.LegacyLP.com.
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