The bank group for Rex Energy Corp. (NasdaqGS: REXX) voted to increase the borrowing base under the company’s senior secured credit facility by 15%, bringing it to $375 million, up from $325 million, the company said March 31.
The bank group also upsized the commitments under the facility to $375 million, up from $215 million, Rex Energy said.
A successful drilling program, increased EURs and growth in reserves and production led to the borrowing base’s increase, Rex Energy said.
"The increase in our borrowing base to $375 million demonstrates the tremendous value of our assets," said Tom Stabley, CEO.
He added, "We appreciate the support of our bank group and believe that the increased borrowing base, coupled with our already ample liquidity, only furthers Rex Energy's ability to develop our assets."
KeyBank N.A. led the bank group and served as the facility’s administrative agent, while Royal Bank of Canada, SunTrust Bank, BMO Harris Financing, Capital One N.A., The Huntington National Bank, M&T Bank, One West Bank N.A., Union Bank N.A., U.S. Bank N.A. and Wells Fargo Bank N.A. were in the bank group, the company said.
State College, Pa.-based Rex Energy operates in the Appalachian and Illinois Basins.
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