Loan & DebtOct 7, 2026, 05:01 PM
W&T Offshore Converts Credit Facility to RBL, Enhancing Flexibility
AI Summary
W&T Offshore, Inc. has converted its existing $50 million revolving credit facility into a reserve-based lending (RBL) facility, enhancing its financial flexibility. The new facility has a maximum credit amount of $100 million and an initial borrowing base of $50 million, with semi-annual redeterminations. Key benefits include the elimination of restrictive features such as cash sweeps and quarterly clean-downs, and an increase in the restricted payments basket by 50% to $15 million. Pricing and financial covenants remain unchanged, and CIBC has rejoined the bank group.
Key Highlights
- W&T Offshore converted its $50 million revolving credit facility to a reserve-based lending (RBL) facility.
- The RBL facility has an aggregate maximum credit amount of $100 million and an initial borrowing base of $50 million.
- The facility matures on the earlier of July 28, 2028, or 6 months prior to the Senior Second Lien Notes maturity.
- Restrictive features like the 75% excess cash flow sweep and quarterly clean-down requirement were eliminated.
- The annual restricted payments basket increased by 50% to $15 million.
- Interest rates remain unchanged, with options for Adjusted Term SOFR (min 3.00%) or Base Rate, plus an Applicable Margin.
- CIBC rejoined the bank group with a $10 million commitment, replacing an exiting lender.
Price Impact
More from WTI