re: Stone energy. Anyone with info

quote:

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On April 13, 2016, Stone received notice from Bank of America, N.A., as administrative agent and issuing bank under the Fourth Amended and Restated Credit Agreement dated June 24, 2014 (the "Credit Facility"), that its borrowing base had been reduced to $300 million from $500 million, effective April 13, 2016. On March 9, 2016, Stone borrowed $385 million under the Credit Facility, which represented substantially all of the remaining undrawn amount that was available under the Credit Facility. As of April 13, 2016, Stone had $457 million of outstanding borrowings and $18.3 million of outstanding letters of credit under the Credit Facility, or $175.3 million in excess of the redetermined borrowing base (referred to as a borrowing base deficiency). The Credit Facility provides that within 30 days after notification of a borrowing base deficiency, Stone must elect to cure the borrowing base deficiency through any combination of the following actions: (1) repay amounts outstanding sufficient to cure the deficiency within 10 days after Stone's written election to do so; (2) add additional oil and gas properties acceptable to the banks to the borrowing base and take such actions necessary to grant the banks a mortgage in such oil and gas properties within 30 days after Stone's written election to do so; and/or (3) arrange to pay the deficiency in six equal monthly installments. As of April 13, 2016, Stone had cash on hand of approximately $360 million. The new borrowing base will be in effect until Stone's next borrowing base redetermination for the Credit Facility.

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