W&T Offshore Completes Conversion of Revolving Credit Facility to Reserve-Based Lending Structure, Enhancing Financial Flexibility
W&T Offshore amended its credit agreement with Texas Capital Bank as agent, converting its $50.0 million revolver into a conventional reserve-based lending facility effective October 1, 2026. The amendment eliminates the 75% excess cash flow sweep, the quarterly clean-down requirement and the $100.0 million minimum PDP PV-10 asset coverage covenant, and raises the annual restricted payments basket 50% to $15.0 million, with a path to expand commitments to $100.0 million.
Key figures
- Deal Value Usd
- 50000000
- Cibc commitment
- $10.0 million
- Max credit capacity
- $100.0 million
- Net leverage covenant
- 2.50x
- Current ratio covenant
- 1.00x
- Initial borrowing base
- $50.0 million
- Total liquidity q4 2026
- $234 million
- Restricted payments basket
- $15.0 million
AI analysis
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