W&T Offshore, Inc. has amended its credit agreement, converting its revolving credit facility into a reserve-based revolving facility. The amended agreement establishes an initial borrowing base and elected commitment amount of $50.0 million, with an aggregate maximum credit amount of $100.0 million. The amendment, effective October 1, 2026, also provides for more favorable covenants.
Key Details
- Facility Terms: The facility matures on the earlier of July 28, 2028, or six months prior to the maturity of the company's Senior Second Lien Notes. The initial borrowing base is set at $50.0 million and is subject to semi-annual redeterminations beginning November 1, 2026.
- Covenant Changes: The amendment removes several previous requirements, including: maintaining a minimum PDP PV-10 of $100.0 million, monthly prepayments from excess cash flow, and a quarterly paydown requirement. The annual cap on certain Restricted Payments was increased from $10.0 million to $15.0 million.
- Lender Update: Canadian Imperial Bank of Commerce, New York Branch, has replaced Macquarie Bank Limited as a lender, assuming its $10.0 million elected commitment.