Denver-based Whiting reported that its lenders had slashed its borrowing base from $4 billion to $2.75 billion, while at the same time cutting their lending commitment from $3.5 billion to $2.5 billion.
The magnitude of the cut was in line with earlier commentary from Whiting’s management.
In addition to the changes to the borrowing base and lending commitment, Whiting won some relaxation of certain covenants governing its borrowing including the ability to add up to $1 billion in second-lien debt if the money is used to buy back its first lien debt, which is currently trading at a discount.
