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Berry Corp. addressed its near-term debt maturities with the closing of a debt refinancing on Dec. 24, the company said in a Dec. 26 press release.
Valor Upstream Credit Partners, managed by Breakwall Capital LP and in partnership with Vitol, is the lender of the senior secured term loan agreement.
Berry Corp. borrowed $450 million under the term loan credit agreement. Proceeds from the refinancing will go towards funding the full redemption of outstanding 7% senior notes due 2026 of Berry subsidiary Berry Petroleum Co. LLC. Remaining proceeds will go towards capex and other general corporate purposes.
TCBI Securities Inc., doing business as Texas Capital Securities, served as capital structure adviser to Berry and sole arranger of the senior secured revolving credit agreement.
Upon closing, the company now has a liquidity of more than $100 million.
The refinancing ensures capital and liquidity for the company to address its strategic growth plans, said Berry CEO Fernando Araujo.
“Looking to 2025, we are ready to execute on value enhancing opportunities in both California and the Uinta Basin, where we believe there is potential to drive substantial long-term shareholder value," Araujo said.
Berry also entered into a 3-year reserve-based revolving loan under a senior secured revolving credit agreement with Texas Capital Bank as an administrative agent and a group of banks for borrowing availability. The borrowing base is $95 million, with $63 million in elected commitments resulting in $63 million in borrowing availability until the next scheduled redetermination of the borrowing base in the spring of 2025.
The term loan credit agreement will have a delayed draw term loan commitment that, when aggregated with the available commitments under the senior secured revolving credit agreement, will provide up to $95 million of borrowing availability for working capital and other general corporate purposes.
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