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Get filing alertsW&T Offshore converts $50M revolver to reserve-based facility, removes cash sweep and clean-down
Filed October 7, 2026 · Period ending October 1, 2026 · ~1 min read
Key Changes
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high
Converted its $50M revolving credit facility into a reserve-based lending facility with an initial borrowing base of $50M and a $100M maximum credit amount.
Item 1.01 verify on EDGAR → -
high
Removed the 75% excess cash flow sweep, quarterly clean-down requirement, and $100M minimum PDP PV-10 covenant, giving greater control over cash flow and liquidity.
Exhibit 99.1 view on EDGAR → -
high
Financial covenants unchanged: maximum net leverage ratio of 2.50x and minimum current ratio of 1.00x.
Item 1.01 verify on EDGAR → -
medium
Increased annual restricted payments basket by 50% to $15M, boosting capacity for dividends or buybacks.
Exhibit 99.1 view on EDGAR → -
medium
CIBC joined the bank group with a $10M commitment, replacing Macquarie Bank as exiting lender; all continuing lenders maintained full commitments.
Item 1.01 verify on EDGAR →
Summary
W&T Offshore amended its credit agreement to convert its existing $50 million revolving credit facility into a conventional reserve-based lending facility. The initial borrowing base is set at $50 million, fully supporting the elected commitments, with an aggregate maximum credit amount of $100 million that provides room to increase commitments subject to borrowing base availability and lender consent.
The amendment removes several restrictive features, including a 75% excess cash flow sweep, a quarterly clean-down requirement, and a $100 million minimum PDP PV-10 asset coverage covenant, giving the company greater control over its cash flow and liquidity. The annual restricted payments basket was increased by 50% to $15 million, enhancing capacity for shareholder returns.
Interest rate margins, the Term SOFR floor, maturity, collateral, and financial covenants remain unchanged, with a maximum net leverage ratio of 2.50x and a minimum current ratio of 1.00x. CIBC joined the bank group with a $10 million commitment, replacing Macquarie Bank, while all continuing lenders maintained their full commitments. The company disclosed total liquidity of approximately $234 million entering the fourth quarter of 2026.
Section-by-Section Diff
Event · Item 2.03 — Creation of a Direct Financial Obligation
Item 2.03 also reports this as a direct financial obligation (body incorporates the primary Item by reference).
Added in current filing · view on EDGAR →
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information set forth under Item 1.01 regarding the terms of the Amended Credit Agreement is incorporated by reference into this Item 2.03.
The company also filed this under Item 2.03, which means it is reporting the arrangement as a direct financial obligation. The Item 2.03 text refers back to the Item 1.01 entry for the terms rather than restating them.
Event · Item 1.01 — Entry into a Material Definitive Agreement
Item 1.01 — Entry into a Material Definitive Agreement filed; see Key Changes for terms.
Added in current filing · verify on EDGAR →
The initial Borrowing Base is $50.0 million, equal to the Aggregate Elected Commitment Amounts, until the next scheduled redetermination.
The initial borrowing base is set at $50.0 million, matching the elected commitment amount. The borrowing base will be redetermined semi-annually starting November 1, 2026, and can be reduced automatically upon certain debt incurrences, asset dispositions, or hedge liquidations.
Added in current filing · verify on EDGAR →
SOFR Loans Margin | 3.750 % | 4.000 % | 4.250 % | 4.750 %
The applicable margin for SOFR loans ranges from 3.750% to 4.750% depending on utilization of the credit facility as a percentage of the borrowing base. The commitment fee rate is 0.500% across all utilization levels. The amendment did not change the interest rate margins, the 3.00% floor on Adjusted Term SOFR, or the commitment fee rate.
Added in current filing · verify on EDGAR →
The Amended Credit Agreement continues to require the Company to maintain, as of the last day of each fiscal quarter, (i) a Consolidated Net Leverage Ratio (as defined in the Amended Credit Agreement) of not greater than 2.50 to 1.00 and (ii) a Current Ratio (as defined in the Amended Credit Agreement) of not less than 1.00 to 1.00.
The company must maintain a consolidated net leverage ratio of no more than 2.50 to 1.00 and a current ratio of at least 1.00 to 1.00. The amendment removed the prior requirement to maintain PDP PV-10 of at least $100.0 million and certain prepayment obligations.
Added in current filing · verify on EDGAR →
Macquarie Bank Limited (the “Exiting Lender”) irrevocably sold and assigned all of its rights and obligations (other than any Swap Obligations (as defined in the Amended Credit Agreement) that may exist between Exiting Lender and the Company) as a lender under the Credit Agreement, including its $10.0 million elected commitment and its outstanding loans and participations in letters of credit, to Canadian Imperial Bank of Commerce, New York Branch (the “New Lender”).
Macquarie Bank Limited exited the credit agreement and assigned its $10.0 million elected commitment to Canadian Imperial Bank of Commerce, New York Branch. The new lender now holds 20% of the aggregate elected commitment amounts.
Event · Exhibit 99.1
W&T Offshore converts its $50M revolver to a reserve-based lending facility, removing restrictive features and boosting shareholder return capacity.
Added in current filing · view on EDGAR →
No change to interest rate margins, the Term SOFR floor, maturity, collateral or the Company’s financial covenants, including a maximum net leverage ratio of 2.50x and a minimum current ratio of 1.00x;
The amendment does not change interest rate margins, the Term SOFR floor, maturity, collateral, or financial covenants. The maximum net leverage ratio remains 2.50x and the minimum current ratio remains 1.00x.
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Figures/quotes linked to EDGAR · Narrative written by AI · Oct 8, 2026 · How we verify