Summary
EOG Resources, Inc. (EOG) has entered into a significant unsecured Revolving Credit Agreement, effective June 28, 2005, with JPMorgan Chase Bank, N.A., as Administrative Agent. This new credit facility provides EOG with access to up to $600 million, with an option to increase the total commitments to $1 billion. The agreement matures on June 28, 2010, with provisions for extensions. This facility is designed to support EOG's general corporate purposes, including liquidity for its commercial paper program and financing working capital. It also includes a sublimit for letters of credit and dedicated sub-facilities for Canadian and UK subsidiaries, with the Company providing guarantees. The terms include customary covenants for investment-grade senior unsecured credits, such as maintaining a specific debt-to-capitalization ratio, and are influenced by the Company's credit rating.
Key Highlights
- 1EOG Resources entered into a $600 million unsecured Revolving Credit Agreement on June 28, 2005.
- 2The credit facility has a maturity date of June 28, 2010, with options for one-year extensions.
- 3The Company has the flexibility to request an increase in aggregate commitments up to $1 billion.
- 4A $200 million sublimit is available for letters of credit.
- 5The agreement includes Canadian and UK sub-facilities, each with a $75 million limit, guaranteed by the parent company.
- 6Borrowings can be used for general corporate purposes, including commercial paper liquidity and working capital.
- 7The credit facility contains standard covenants for investment-grade senior unsecured debt, including a debt-to-total capitalization ratio requirement.