OilVoice - Cimarex Energy Announces Increased Bank Credit Facility

Cimarex Energy Announces Increased Bank Credit Facility

Wednesday, April 15, 2009

Cimarex Energy Co. has entered into a new three-year senior secured revolving credit facility. The new facility increases bank commitments from $500 million to a fully-subscribed $800 million. The borrowing base remains unchanged at $1 billion.

The credit facility is provided by a syndicate of 14 banks led by JP Morgan Chase Bank, N.A. and matures on April 14, 2012. The outstanding borrowings on the credit facility generally bear interest at LIBOR plus a margin in the range of 2.0% to 3.0%, depending on the borrowing base usage. With the one-month LIBOR currently at less than 0.50%, the all-in interest rate is approximately 2.75%.

At March 31, 2009, Cimarex had $345 million of borrowings outstanding under its bank credit facility. The final agreement, which includes the specific terms and covenants governing the credit facility, will be filed with the Securities and Exchange Commission.