- Sanchez Energy (SN -8%) is sharply lower after saying that it amended its credit facility agreement, reducing the borrowing base to $425M from $500M.
- The amended agreement allows for the incurrence of second lien debt not to exceed $400M, plus any principal representing payment of interest in kind.
- SN says it expect to fully fund 2016 planned capex of $200M-$250M through cash on hand and cash flow from operations without drawing down on the revolving credit facility, and expects to enter 2017 with a positive cash balance.