Amplify Energy Corp. (NYSE: AMPY) (“Amplify” or the “Company”) today announced the closing of a new senior secured reserve-based revolving credit facility with Keybanc Capital Markets Inc., Cadence Bank, N.A. and Citizens Bank, N.A. as joint lead arrangers and KeyBank National Association as the administrative agent (the "New Credit Facility"). The New Credit Facility replaces in full the Company’s existing senior secured reserve-based revolving credit facility.
The initial borrowing base under the facility is $150 million with elected commitments of $135 million. The borrowing base will be redetermined on a semi-annual basis with the next redetermination expected to occur in the fourth quarter of 2023. After closing the New Credit Facility on July 31, 2023, Amplify had total net debt of $113 million, with $120 million outstanding under its revolving credit facility and $7 million of cash on hand, and Amplify’s liquidity was $22 million.
Certain key terms and conditions under the New Credit Facility include:
- A maturity date of July 31, 2027;
- The loans shall bear interest at a rate per annum equal to (i) adjusted SOFR or (ii) an adjusted base rate, plus an applicable margin based on a utilization ratio of the lesser of the borrowing base and the aggregate commitments. The applicable margin ranges from 2.00% to 3.00% for adjusted base rate borrowings, and 3.00% to 4.00% for adjusted SOFR borrowings;
- The unused commitments under the New Credit Facility will accrue a commitment fee of 0.50%, payable quarterly in arrears; and
- Certain financial covenants, including the maintenance of (i) a net debt leverage ratio not to exceed 3.00 to 1.00, determined as of the last day of each fiscal quarter for the four fiscal-quarter period then ending and (ii) a current ratio of not less than 1.00 to 1.00, determined as of the last day of each fiscal quarter, in each case commencing with the fiscal quarter ending December 31, 2023.
Martyn Willsher, Amplify’s President and Chief Executive Officer commented, “Despite a challenging credit market, we are pleased to announce we have successfully closed a new credit facility. This facility will provide ample liquidity for the Company, while providing us with the flexibility to pursue value-enhancing initiatives. We would especially like to express our appreciation for the support from KeyBank and the syndicate of lenders, and we look forward to a strong, long-lasting partnership.”
