Eagle Rock Amends and Increases Revolving Credit Line Agreement
Eagle Rock Energy Partners, LP (EROC), a producer and marketer of natural gas, increased its bank loan and obtained permission from lenders to loosen a debt covenant, according to a statement from the company.
The company increased total commitments to $820 million from $675 million, with Whitney Bank being added to the existing group of lenders, according to a statement distributed today by Globe Newswire. The credit line has been amended to allow a temporary increase in the total leverage ratio to 4.75 times from 4.5 times through the third quarter of 2013.
Eagle Rock had used $331 million as of Sept. 30 from the revolving credit line, which matures in June 2016, according to data compiled by Bloomberg. The company has $550 million of outstanding 8.375 percent high-yield bonds maturing in June 2019.
The Houston-based partnership will report a 3 percent drop in 2012 revenue to $996 million, according to the mean of three analyst estimates. The company announced the completion of the acquisition of BP America Production Company’s assets for $227.5 million in October.
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