SilverBow Resources Announces Increased Borrowing Base and Maturity Extension of Second Lien Notes
November 15 2021 - 8:00AM
Business Wire
SilverBow Resources, Inc. (NYSE: SBOW) (“SilverBow” or “the
Company”) today announced it has entered into an amendment to its
senior secured revolving credit facility (“Credit Facility”) under
which the borrowing base has been increased from $300 million to
$460 million in connection with its regularly scheduled semi-annual
redetermination and in conjunction with closing its previously
announced acquisition on October 11, 2021. Concurrently, the
Company has also entered into an amendment to its Second Lien Notes
Purchase Agreement (“Second Lien Facility”) which extends the
maturity date from December 2024 to December 2026 subject to paying
down the principal amount of the Second Lien Facility from $200
million to $150 million. The Company intends to make the $50
million payment later this month.
MANAGEMENT COMMENTS
Sean Woolverton, SilverBow’s Chief Executive Officer, commented,
“I would like to thank our bank syndicate for their support as we
continue to execute on our key objectives. The 50% increase to our
borrowing base reflects the value SilverBow has added through the
drillbit, our previously announced acquisitions and improved
commodity prices. Our liquidity is now at the highest level it has
been since early 2018.”
Mr. Woolverton commented further, “SilverBow is well positioned
to play offense as we evaluate strategic M&A and further
develop our Eagle Ford and Austin Chalk assets. The Company’s
enhanced liquidity broadens our opportunity set, as evidenced by
the maturity extension and redemption optionality of our Second
Lien Facility. By extending the maturity runway to late 2026, we
can be thoughtful on adding accretive assets to the portfolio,
generating free cash flow and further enhancing shareholder
value.”
LIQUIDITY UPDATE
As of October 31, 2021, the Company had $2.6 million in cash and
$199 million of outstanding borrowings under its Credit Facility.
Adjusted for the increase to the borrowing base to $460 million,
the Company had $261 million of undrawn capacity and $2.6 million
in cash, resulting in $264 million of liquidity. This is not
inclusive of the aforementioned $50 million paydown of the Second
Lien Facility.
ABOUT SILVERBOW RESOURCES, INC.
SilverBow Resources, Inc. (NYSE: SBOW) is a Houston-based energy
company actively engaged in the exploration, development, and
production of oil and gas in the Eagle Ford Shale and Austin Chalk
in South Texas. With over 30 years of history operating in South
Texas, the Company possesses a significant understanding of
regional reservoirs which it leverages to assemble high quality
drilling inventory while continuously enhancing its operations to
maximize returns on capital invested. For more information, please
visit www.sbow.com. Information on the Company’s website is not
part of this release.
FORWARD-LOOKING STATEMENTS
This release includes “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
These forward-looking statements represent management's
expectations or beliefs concerning future events, and it is
possible that the results described in this release will not be
achieved. These forward-looking statements are based on current
expectations and assumptions and are subject to a number of risks
and uncertainties, many of which are beyond our control. Important
factors that could cause actual results to differ materially from
our expectations include, but are not limited to, risks and
uncertainties discussed in the Company’s reports filed with the
Securities and Exchange Commission. All forward-looking statements
speak only as of the date of this news release. You should not
place undue reliance on these forward-looking statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20211115005291/en/
Jeff Magids Director of Finance & Investor Relation (281)
874-2700, (888) 991-SBOW
SilverBow Resources (NYSE:SBOW)
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