Junk E&Ps scramble for financing

摘要

US high-yield energy companies are scrambling to line up billions of dollars of emergency financing as they head into the start of what is likely to be a brutal round of cuts to their revolving loans. Banks are expected to start reining in the size of many E&P companies' revolvers in the spring, when the biannual "borrowing base redeterrnination" of the size of their bread and butter asset-based revolvers gets underway. The worst of the junk-rated companies are staring at a downsizing of their borrowing bases by as much as 10%-15% -if not in the spring session then in the next round of redeterminations in the autumn, if oil prices remain in the US$50 to US$60 a barrel range.