MIDLAND, Texas, April 3, 2012 (GLOBE NEWSWIRE) -- Legacy Reserves LP (Nasdaq:LGCY) announced today that it has secured commitments from its bank group to expand its borrowing base to $565 million from the previous $550 million under its $1 billion secured revolving Credit Agreement with its Administrative Agent, BNP Paribas, its co-Syndication Agents, Compass Bank and Wells Fargo Bank, N.A. ("Wells Fargo"), and its co-Documentation Agents, UBS AG and U.S. Bank National Association. In addition, Bank of Montreal and Citibank, N.A. have joined Legacy's lending group, increasing the current number of participating banks to fifteen. As of March 31, 2012, Legacy had $333 million of debt outstanding under its Credit Agreement, leaving approximately $232 million available. The borrowing base is next scheduled to be redetermined on or about October 1, 2012.
In addition, on February 21, 2012, BNP Paribas announced that it had entered into an agreement to sell its reserve-based lending business in the United States and Canada to Wells Fargo, subject to regulatory and other approvals. Accordingly, Legacy anticipates that Wells Fargo will take over as the Administrative Agent under its Credit Agreement when this acquisition is complete.
James R. Lawrence, Legacy's Interim Chief Financial Officer, Vice President-Finance and Treasurer, commented, "Our increased borrowing base was significantly oversubscribed, and we are excited about the addition of two new members to our bank group. We appreciate the ongoing support of our banks and, in particular, the large commitments from our agent banks. We would like to thank BNP Paribas, which has been the Administrative Agent under our Credit Agreement since our formation, for all of their strong support and contributions to our growth. We look forward to continuing to work with the BNP reserve-based lending team as they transition to Wells Fargo, which has also been an outstanding partner to Legacy since our formation."
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, Mid-Continent and Rocky Mountain regions of the United States. Additional information is available at www.LegacyLP.com.
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Cautionary Statement Relevant to Forward-Looking Information
This press release contains forward-looking statements relating to our operations that are based on management's current expectations, estimates and projections about its operations. Words such as "anticipates," "expects," "intends," "plans," "targets," "projects," "believes," "seeks," "schedules," "estimated," and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are: realized oil and natural gas prices; production volumes, lease operating expenses, general and administrative costs and finding and development costs; future operating results and the factors set forth under the heading "Risk Factors" in our annual and quarterly reports filed with the SEC. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. The reader should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, Legacy undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.