MIDLAND, Texas, March 10, 2011 (GLOBE NEWSWIRE) -- Legacy Reserves LP (Nasdaq:LGCY) announced today that it has entered into an amended and restated five-year, $1 billion secured revolving Credit Agreement with its Administrative Agent, BNP Paribas, its Syndication Agent, Wells Fargo Bank, N.A., and its Documentation Agent, Compass Bank, which are leading a syndicate of thirteen banks. The initial borrowing base has been increased to $500 million from $410 million, primarily reflecting Legacy's acquisition and development activities over the past six months. This borrowing base is scheduled to be redetermined every six months starting October 1, 2011. As of March 10, 2011, Legacy has $348 million of debt outstanding under the Credit Agreement, leaving approximately $152 million available. The LIBOR interest rate margin ranges from 1.75% to 2.75%, which is 0.25% to 0.5% lower than the previous Credit Agreement. The commitment fee on unused capacity remains the same at 0.5%. Legacy will initially be paying 2.25% over one month LIBOR, which is currently 0.26%, for an interest rate of approximately 2.5%. Legacy has LIBOR interest rate swaps in place with average fixed rates of 3.05% and terms expiring April through December of 2013 on $264 million of its debt.
On March 8, 2011, the Board of Directors of Legacy Reserves GP, LLC, the general partner of Legacy Reserves LP, approved the promotion of James R. Lawrence to the position of Vice President–Finance, in addition to his current position as Treasurer.
Steven H. Pruett, President and Chief Financial Officer, commented, "Jim's promotion reflects his growing role and impact on Legacy, particularly in working with our executive team and financial partners, including our investors, investment banks, research analysts, and lenders. We are very pleased with the terms of Legacy's new five-year credit facility, and welcome two new banks to our syndicate. We thank Legacy's agent bank, BNP Paribas, for the successful outcome, and thank the members of our bank group for their ongoing support."