Berry Corporation Announces Successful Completion of Refinancing Transactions, Extending Debt Maturities
Berry (BRY) has successfully completed a comprehensive refinancing of its existing debt on December 24, 2024. The transaction includes a $450 million borrowing under the Term Loan Credit Agreement and a three-year reserve-based revolving loan with a maximum commitment of $500 million.
The refinancing provides Berry with over $100 million in liquidity at closing and extends debt maturities, enabling the company to execute its development plans, particularly in Utah. The proceeds will fund the full redemption of the 7.000% Senior Notes due 2026 and support capital expenditures. The initial borrowing base is set at $95 million with elected commitments of $63 million until Spring 2025.
Berry (BRY) ha completato con successo un'ampia rifinanziamento del suo debito esistente il 24 dicembre 2024. L'operazione include un prestito di 450 milioni di dollari ai sensi del Contratto di Prestito a Termine e un prestito revolving basato su riserve di tre anni con un impegno massimo di 500 milioni di dollari.
Il rifinanziamento fornisce a Berry oltre 100 milioni di dollari di liquidità al closing e prolunga le scadenze del debito, consentendo all'azienda di attuare i suoi piani di sviluppo, in particolare nello Utah. I proventi finanzieranno il rimborso totale delle Note Senior al 7,000% in scadenza nel 2026 e supporteranno le spese in conto capitale. La base iniziale di prestito è fissata a 95 milioni di dollari con impegni eletti di 63 milioni di dollari fino alla primavera del 2025.
Berry (BRY) ha completado con éxito una reestructuración integral de su deuda existente el 24 de diciembre de 2024. La transacción incluye un préstamo de 450 millones de dólares bajo el Acuerdo de Préstamo a Plazo y un préstamo revolving basado en reservas a tres años con un compromiso máximo de 500 millones de dólares.
El refinanciamiento proporciona a Berry más de 100 millones de dólares en liquidez al cierre y extiende los vencimientos de la deuda, permitiendo a la empresa ejecutar sus planes de desarrollo, particularmente en Utah. Los fondos se utilizarán para el reembolso total de las Notas Senior al 7,000% que vencen en 2026 y apoyarán los gastos de capital. La base de préstamos inicial se establece en 95 millones de dólares con compromisos electos de 63 millones de dólares hasta la primavera de 2025.
베리 (BRY)는 2024년 12월 24일에 기존 부채에 대한 종합적인 재융자를 성공적으로 완료했습니다. 이번 거래에는 만기 대출 계약에 따라 4억 5천만 달러의 차입과 최대 5억 달러의 3년 만기 기반 회전 대출이 포함됩니다.
재융자는 베리에게 종료 시 1억 달러 이상의 유동성을 제공하고 부채 만기를 연장하여 회사가 유타주에서의 개발 계획을 실행할 수 있도록 합니다. 수익금은 2026년 만기 예정인 7.000%의 선순위 노트를 전액 상환하는 데 사용되며, 자본 지출을 지원합니다. 초기 차입 기반은 9천 5백만 달러로 설정되며, 봄 2025년까지 6천 3백만 달러의 선택적 약정이 있습니다.
Berry (BRY) a réussi à finaliser un refinancement complet de sa dette existante le 24 décembre 2024. La transaction comprend un emprunt de 450 millions de dollars dans le cadre de l'Accord de Prêt à Terme et un prêt revolving basé sur les réserves sur une durée de trois ans, avec un engagement maximum de 500 millions de dollars.
Ce refinancement offre à Berry plus de 100 millions de dollars de liquidités lors de la clôture et prolonge les échéances de la dette, permettant à l'entreprise d'exécuter ses plans de développement, notamment dans l'Utah. Les produits serviront à financer le remboursement intégral des Obligations Senior à 7,000% arrivant à échéance en 2026 et soutiendront les dépenses en capital. La base de prêt initiale est fixée à 95 millions de dollars avec des engagements choisis de 63 millions de dollars jusqu'au printemps 2025.
Berry (BRY) hat am 24. Dezember 2024 erfolgreich eine umfassende Umschuldung seiner bestehenden Schulden abgeschlossen. Die Transaktion umfasst eine Kreditaufnahme von 450 Millionen Dollar im Rahmen des Kreditvertrags über ein Termingeld sowie ein dreijähriges revolvierendes Darlehen mit einer maximalen Zusage von 500 Millionen Dollar.
Die Umschuldung verschafft Berry über 100 Millionen Dollar an Liquidität zum Zeitpunkt des Abschlusses und verlängert die Fälligkeiten der Schulden, wodurch das Unternehmen seine Entwicklungspläne, insbesondere in Utah, umsetzen kann. Die Erlöse werden zur vollständigen Rückzahlung der 7,000% Senior Notes fällig 2026 verwendet und unterstützen Investitionen in Sachanlagen. Die anfängliche Kreditbasis beträgt 95 Millionen Dollar mit gewählten Zusagen von 63 Millionen Dollar bis zum Frühjahr 2025.
- Secured $450 million Term Loan Credit Agreement
- Obtained $500 million maximum commitment revolving loan facility
- Achieved over $100 million in liquidity at closing
- Successfully extended debt maturities
- Initial borrowing base to $95 million
- Elected commitments restricted to $63 million until Spring 2025
Insights
Berry 's $450 million refinancing marks a strategic pivot, substantially improving their debt profile. The new Term Loan Credit Agreement and $500 million revolving credit facility maximum commitment provide enhanced financial flexibility. The $95 million borrowing base with $63 million elected commitments offers immediate liquidity cushion.
Critical financial implications include: Extended debt maturities replacing the 7.000% 2026 Notes, improved working capital position with >$100 million liquidity post-closing and a structured delayed draw term loan feature. This refinancing strengthens Berry's ability to fund their Utah development plans while maintaining California operations and shareholder returns.
The transaction's timing, completed before year-end 2024, positions Berry advantageously for 2025 capital deployment. The partnership with Valor Upstream Credit Partners and Texas Capital Bank indicates strong institutional confidence in Berry's asset base and business model.
The refinancing bolsters Berry's strategic position in both the San Joaquin and Uinta basins. Their portfolio mix of 100% oil assets in California complemented by Utah's 60% oil/40% gas split provides operational diversity and commodity exposure balance. The enhanced liquidity enables accelerated development of Utah's untapped potential while maintaining stable California production.
The company's dual-basin strategy and well servicing segment create operational synergies. With secured funding, Berry can now optimize their asset base through targeted capital deployment. The spring 2025 borrowing base redetermination could potentially increase available credit based on development success and commodity prices.
DALLAS, Dec. 26, 2024 (GLOBE NEWSWIRE) -- Berry Corporation (bry) (NASDAQ: BRY) (“Berry” or the “Company”) announced the closing of a comprehensive refinancing of its existing indebtedness on December 24, 2024 (the “Transactions”), providing the Company with capital and liquidity to continue progressing Berry’s corporate strategy:
- Ensuring capital and liquidity to execute on the Company’s development plans including unlocking the significant upside potential in Utah to drive long-term shareholder value
- Extending the Company’s debt maturities enables Berry to execute on strategic growth opportunities that provide scale and geographic diversification
- Sustaining production at current levels while utilizing cash flow for capital expenditures, dividend payments and debt reduction
“With our refinancing complete, Berry is well positioned with the financial resources to advance our strategic goals and achieve long-term growth. Looking to 2025, we are ready to execute on value enhancing opportunities in both California and the Uinta Basin, where we believe there is potential to drive substantial long-term shareholder value,” said Fernando Araujo, Berry’s Chief Executive Officer.
Mike Helm, Berry’s Chief Financial Officer, commented, “By successfully addressing our near-term debt maturities, we have the financial flexibility to focus on our core business and pursue our key priorities for 2025 and beyond. With liquidity of more than
Valor Upstream Credit Partners, L.P., which is managed by Breakwall Capital LP in partnership with Vitol, is the lender on the Senior Secured Term Loan Credit Agreement, dated as of November 6, 2024 (as amended, supplemented or otherwise modified, the “Term Loan Credit Agreement”) entered into by, among others, the Company, as borrower, certain subsidiaries of the Company party thereto, as guarantors and Breakwall Credit Management LLC, as administrative agent. TCBI Securities, Inc., doing business as Texas Capital Securities, served as capital structure advisor to Berry and sole arranger of the Senior Secured Revolving Credit Agreement, dated as of December 24, 2024 (as amended, supplemented or otherwise modified, the “Senior Secured Revolving Credit Agreement”), entered into by, among others, the Company, as borrower, certain subsidiaries of the Company party thereto, as guarantors, and Texas Capital Bank, as lender and administrative agent.
As part of the Transactions, the Company borrowed
The Company has also entered into a three-year reserve-based revolving loan under the Senior Secured Revolving Credit Agreement with Texas Capital Bank as administrative agent, and a syndicate of banks providing for borrowing availability equal to the lesser of (i) the maximum commitments of
About Berry Corporation (bry)
Berry is a publicly traded (NASDAQ: BRY) western United States independent upstream energy company with a focus on onshore, low geologic risk, long-lived oil and gas reserves. We operate in two business segments: (i) exploration and production (“E&P”) and (ii) well servicing and abandonment. Our E&P assets are located in California and Utah, are characterized by high oil content and are predominantly located in rural areas with low population. Our California assets are in the San Joaquin basin (
Forward-Looking Statements
Certain statements and information in this press release may constitute “forward-looking statements.” The statements discussed in this press release that are not purely historical data are forward-looking statements, including, but not limited to, the statements regarding the Transactions, the full redemption of the 2026 Notes and the borrowing availability under the Senior Secured Revolving Credit Agreement. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control), including general market conditions and assumptions that could cause our actual results to differ materially from our historical experience and our present expectations. For additional information regarding known material risks, uncertainties and other factors that can affect future results, please see our filings with the Securities and Exchange Commission, including our latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.
FAQ
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