Battalion Oil Cuts Margin to 6.5% Over SOFR, Extends Debt to 2029
BATL•Battalion Oil rolls its $162.5 million term debt into a new credit facility with a fixed 6.5% margin over SOFR, extends maturity to December 2029 and defers principal payments until Q2 2027. It secures up to $175 million in discretionary delayed-draw capacity and maintains net debt near $65.5 million.
1. Third Amended Credit Agreement Execution
Battalion executed a Third Amended and Restated Senior Secured Credit Agreement that rolls its full $162.5 million term loan into a new facility with a fixed 6.5% margin over SOFR, extends maturity to December 31, 2029, and defers all principal amortization until Q2 2027.
2. Borrowing Cost Reduction and Debt Profile
The refinancing cuts borrowing costs by at least 125 basis points from prior leverage-based rates of 7.75%–8.50%, delivering net debt of approximately $65.5 million after accounting for $96.99 million in cash and reinvestment proceeds.
3. Liquidity and Strategic Growth Capital
The agreement secures up to $175 million of discretionary delayed-draw term loans, enhancing liquidity for Battalion’s Monument Draw development program and providing flexibility for future acquisitions or operational initiatives.
