Matador Resources Co. (NYSE: MTDR) announced that MRC Energy Co., a wholly-owned subsidiary of the company, closed an amended and restated senior secured revolving credit agreement.
Under the credit agreement, the borrowing base was increased to $200 million, up from the previous borrowing base of $125 million. The amendment increased the maximum facility size from $400 million to $500 million and named Royal Bank of Canada as administrative agent. The credit agreement matures in December 2016.
The company plans to use the increased borrowing capacity along with its operating cash flows for working capital and general corporate purposes and, in particular, to continue to execute its Eagle Ford drilling program in south Texas.
With the closing of the credit agreement, the company’s bank group was expanded to include five banks. Joining Royal Bank of Canada, Comerica Bank and Citibank N.A. in the facility are The Bank of Nova Scotia and SunTrust Bank.