MIDLAND, Texas, Oct. 3, 2011 (GLOBE NEWSWIRE) -- Legacy Reserves LP (Nasdaq:LGCY) announced today that it has secured commitments from its 13-member bank group to expand its borrowing base to $535 million from the previous $500 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., and its co-Documentation Agents, UBS and U.S. Bank, N.A. In addition, the borrowing base will be automatically increased to $550 million upon the closing of a pending acquisition which is expected by the end of October 2011. As of September 30, 2011, Legacy has $406 million of debt outstanding under the Credit Agreement, leaving approximately $129 million available. The borrowing base is next scheduled to be redetermined on or about April 1, 2012.
Legacy recently added $100 million of LIBOR interest rate swaps with an average fixed rate of 0.71% with a term expiring August 10, 2014. Legacy also extended certain fixed rate swaps for an additional two years. Legacy now has $364 million of LIBOR swaps in place with average fixed rates of 2.17% with terms expiring April 2013 through November 2015.
Steven H. Pruett, President and Chief Financial Officer, commented, "Our increased borrowing base was significantly oversubscribed without adding any new banks. We appreciate the ongoing support of our banks and in particular, the large commitments from our agent banks. We were also pleased to lock-in low fixed interest rates with additional LIBOR swaps in August."
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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