W&T Offshore converts credit facility to reserve-based lending

W&T Offshore, Inc. has converted its existing $50.0 million revolving credit facility into a reserve-based lending facility. This amendment maintains the initial borrowing base of $50.0 million with elected commitments of the same amount, and the agreement now has an aggregate maximum credit amount of $100.0 million. The borrowing base will be reviewed semi-annually, beginning November 1.

Restrictive features such as the 75% excess cash flow sweep, mandatory quarterly repayments, and the $100.0 million minimum PDP PV-10 asset coverage covenant have been removed. The annual restricted payments basket has been increased by 50%, from $10.0 million to $15.0 million. All other terms, including interest rate margins, collateral, and financial covenants, remain unchanged. The amendment is seen as an important step in W&T Offshore's capital structure evolution.

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