Swift Energy Co. increased the size and extended the maturity of its revolver to get ahead of maturities and have some firepower in case of a potential acquisition, according to Scott Espenshade, Swift's director of investor relations. "We are always looking at acquisitions and we want to be prepared that we have dry powder in case we would find something," he stated.
The revolver was upsized $100 million to $400 million and its maturity was extended three years to October 2008. "Our assets have increased so we have a larger availability, although we have nothing drawn," Espenshade explained. The borrowing base is set at $250 million, but the company is maintaining a commitment of $150 million. The company can increase the commitment to $250 million at its discretion, Espenshade noted. "We have plenty of liquidity available to us," he added. In early June, the company issued $150 million of 7 5/8% senior notes. Proceeds from the note offering were used to refinance some of Swift's outstanding $125 million of 10 1/4% senior subordinated notes and pay down the remainder of the bank line.
Banc One Capital Markets leads the facility. Espenshade said Bank One has been with the company, which is celebrating its 25th anniversary, from the start. He said the company does not expect major changes as a result of the Bank One merger with J.P. Morgan. Chuck Kingswell-Smith, a director in Banc One's energy finance group, is the company's main contact at the bank. Other syndicate members include Bank of Scotland, BNP Paribas, Calyon, Natexis Banques Populaires, Société Générale, Southwest Bank of Texas, UFJ Bank, Washington Mutual Bank and Wells Fargo.