Parsley Energy Credit Agreement

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Parsley Energy, a Texas-based oil and natural gas company, recently announced that it has entered into a new credit agreement. This agreement, which was signed on June 30, 2021, is worth a total of $1.5 billion and replaces the company`s previous credit facility.

The new credit agreement is a five-year senior secured revolving credit facility, which means that Parsley Energy will be able to borrow up to $1.5 billion from a group of lenders. The facility is secured by the company`s assets, including its oil and gas reserves, and has an initial borrowing capacity of $750 million. This amount can be increased up to $1.5 billion if certain conditions are met.

The credit agreement includes a number of important terms and conditions that will have an impact on Parsley Energy`s operations. One of the key provisions is the interest rate that the company will pay on any funds it borrows. Under the new credit facility, Parsley Energy will pay interest at a rate that is determined by the company`s credit rating and other factors.

The agreement also includes covenants that Parsley Energy must abide by in order to maintain compliance with the terms of the facility. These covenants include restrictions on the company`s ability to take on additional debt, limitations on its ability to pay dividends, and requirements for maintaining certain financial ratios.

Overall, the new credit agreement is an important development for Parsley Energy. By securing this financing, the company will have access to the capital it needs to continue growing and expanding its operations. Additionally, the terms of the agreement will help ensure that Parsley Energy remains in compliance with its financial obligations, which will be important for maintaining the trust and confidence of investors and stakeholders.