Memorial Production in forbearance pact, gets extended waiver
Earlier today, Memorial Production Partners announced that it has entered into a forbearance agreement with certain noteholders that hold 51.7% of the Partnership's 7.625% senior notes due 2021 and hold 69% of the Partnership's 6.875% senior notes due 2022, under which the noteholders have agreed to forbear from exercising any and all remedies available to them as a result of MEMP's previously announced election to not make an interest payment of approximately $24.6 million due on the 2021 notes. The Forbearance Agreement extends through December 7, 2016. In addition, MEMP reached an agreement with the lenders under its revolving credit facility to extend through December 16, 2016, the waiver that was previously granted in connection with MEMP's election not to make the interest payment on the 2021 notes as noted above. As previously announced MEMP is engaged in ongoing discussions with its lenders and a steering committee of its noteholders regarding potential strategic alternatives to strengthen its balance sheet and improve its capital structure. The Forbearance Agreement and Extended Waiver will allow the parties to continue this dialogue and work towards a comprehensive solution that substantially improves MEMP's balance sheet. Operations are continuing as normal across MEMP's asset base. Shares of Memorial Production are up almost 33% or 17c to 69c per share in morning trade.