MIDLAND, Texas, June 13, 2019 /PRNewswire/ — Legacy Reserves Inc. (NASDAQ: LGCY) (“Legacy”, and collectively with its subsidiaries, the “Company”) announced today that the Company has entered into third forbearance agreements (the “Third Forbearance Agreements”) with its lenders under its reserve based revolving credit facility (“RBL Lenders”) and its lenders under its second lien term loan (“Second Lien Lenders”). As previously announced, on June 7, 2019, the Company entered into second forbearance agreements with the RBL Lenders and Second Lien Lenders that were scheduled to terminate on 11:59 p.m. (ET) on June 12, 2019.
Under the terms of the Third Forbearance Agreements, the RBL Lenders and Second Lien Lenders have agreed to extend the forbearance period during which the lenders will forbear from exercising any and all remedies available to them in respect of (a) any event of default arising from the maturity of the revolving credit facility on May 31, 2019 and (b) any event of default arising from Legacy not making the interest payments due on June 3, 2019 with respect to its outstanding (i) 8% senior notes due 2020, (ii) 6.625% senior notes due 2021, and (iii) 8% convertible senior notes due 2023. Additionally, the Second Lien Lenders have agreed to further extend the waiver of the covenant that required Legacy to deliver audited financial statements without a “going concern” or like qualification or exception. The forbearance period now extends through 11:59 p.m. (ET) on June 18, 2019, and will terminate upon the earlier of the end of the forbearance period or the occurrence of a specified forbearance termination event.
About Legacy Reserves Inc.
Legacy Reserves Inc. is an independent energy company engaged in the development, production and acquisition of oil and natural gas properties in the United States. Its current operations are focused on the horizontal development of unconventional plays in the Permian Basin and the cost-efficient management of shallow-decline oil and natural gas wells in the Permian Basin, East Texas, Rocky Mountain and Mid-Continent regions. Additional information regarding the Company is available at www.legacyreserves.com.