Loan & DebtMay 22, 2026, 04:32 PM
BKV Corp Amends Credit Agreement, Increases Leverage Ratios
AI Summary
BKV Corp and its subsidiary BKV Upstream Midstream, LLC entered into a Sixth Amendment to their Reserve-Based Lending (RBL) Credit Agreement on May 20, 2026. This amendment modifies several financial covenants, primarily increasing the maximum permitted net leverage ratios for restricted payments, voluntary debt prepayments, and permitted investments. The Borrowing Base was also reaffirmed at $1,000,000,000, and BKV Heritage Pkwy, LLC was added as a Credit Party.
Key Highlights
- Increased maximum net leverage ratio for certain restricted payments (distributable free cash flow) from 2.00:1.00 to 2.25:1.00.
- Increased maximum net leverage ratio for additional restricted payments from 1.75:1.00 to 2.00:1.00.
- Increased maximum net leverage ratio for certain voluntary debt prepayments (distributable free cash flow) from 2.00:1.00 to 2.25:1.00.
- Increased maximum net leverage ratio for additional prepayments from 1.75:1.00 to 2.00:1.00.
- Increased maximum net leverage ratio for certain permitted investments (distributable free cash flow) from 2.00:1.00 to 2.25:1.00.
- Increased maximum net leverage ratio for additional permitted investments from 1.75:1.00 to 2.00:1.00.
- Reaffirmed the Borrowing Base at $1,000,000,000.
- Added BKV Heritage Pkwy, LLC as a Credit Party, Guarantor, and Grantor.
Price Impact
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