Summary
Diamondback Energy, Inc. (FANG) has filed an 8-K report detailing a third amendment to its Second Amended and Restated Credit Agreement, dated November 1, 2013. This amendment, effective June 21, 2016, primarily introduces a requirement for control agreements on deposit and securities accounts to further secure obligations under the credit facility. Notably, the borrowing base has been established at $700.0 million, with the borrower electing a commitment amount of $500.0 million. This amendment provides clarity on Diamondback's debt structure and its commitment to securing its financial obligations. The defined borrowing base and commitment amount are crucial for understanding the company's liquidity and financial flexibility. Investors should note that the focus is on strengthening security for existing debt rather than an immediate increase in available credit, as the elected commitment is below the borrowing base.
Key Highlights
- 1Diamondback Energy entered into a third amendment to its Second Amended and Restated Credit Agreement.
- 2The amendment requires the borrower and other loan parties to provide control agreements for deposit and securities accounts to secure credit agreement obligations.
- 3The borrowing base under the credit agreement has been set at $700.0 million.
- 4The borrower elected a commitment amount of $500.0 million under the credit agreement.
- 5The amendment was entered into on June 21, 2016, with the filing date of June 26, 2016.
- 6Wells Fargo Bank, National Association serves as the administrative agent for the credit agreement.