Vanguard Natural Resources, LLC Announces Amended Senior Secured $1.5 Billion Revolving Credit Facility

Vanguard Natural Resources, LLC VNR announced today it has entered into an amended $1.5 billion senior secured revolving credit facility with an initial borrowing base of $765 million, with Citigroup as administrative agent, co-lead arranger and sole bookrunner and BNP Paribas as co-lead arranger and co-syndication agent. The amended five year credit facility is predicated upon the successful consummation of the previously announced merger between Encore Energy Partners LP ENP (“Encore”) and Vanguard. In addition to extending the maturity of the facility by five years, several key covenant limitations were amended to provide Vanguard greater flexibility including increasing the percentage of production that can be hedged into the future, increasing the permitted debt to EBITDA coverage ratio from 3.5x to 4.0x, eliminating the required interest coverage ratio, eliminating the ten percent liquidity requirement to pay distributions to unitholders, and allowing for unsecured debt. Also, a new interest rate pricing grid will lower Vanguard's cost of bank debt by half a percent.