APA (APA) has released an update to notify the public and investors about an entry into a material definitive agreement.
Apache Corporation has provided an unsecured guaranty for APA Corporation’s obligations under a Credit Agreement, which includes a $2.0 billion commitment for term loans to potentially refinance Callon Petroleum Company’s debt following APA’s acquisition of Callon. The loans are divided into two tranches with different maturity terms and are subject to specific conditions. APA may use the loans solely to refinance Callon’s indebtedness and must prepay any unused amounts within 120 days post-closing. Interest rates for the loans are based on a base rate or adjusted SOFR rate, with various margins depending on the loan’s tenure. The agreement also includes standard financial covenants and events of default similar to APA’s existing credit agreements.
For further insights into APA stock, check out TipRanks’ Stock Analysis page.
For a comprehensive understanding of the announcement, you can read the full document here.
