Oil and gas producer Denbury Resources Inc. (NYSE: DNR) said its lenders reduced its borrowing base by 30% to $1.05 billion and that it had to pledge more assets.
U.S. oil and gas companies are seeing the largest cuts yet to their bank loans as oil prices continue to remain weak.
Every six months, oil and gas producers negotiate with banks how much credit they should be given, based on the value of their reserves in the ground.
Denbury said the amendment to its credit facility increased the mortgaged property collateral requirement to 90% from 85% of its proved reserves.
The amendment also allows the company to take on $1 billion of junior-lien debt that can be issued in exchange for the company's senior subordinated notes or other unsecured debt.
Denbury also said it added to its hedging positions and now has hedges in place through the second quarter of 2017.
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