Mid-Con Energy Partners (MCEP) reported that its borrowing base was reduced to $95 million, with a borrowing cap potentially reducing the availability to $85 million. As well, Mid-Con's leverage covenant is scheduled to step down to 3.5x in 2020.
These changes were not a surprise and remove Mid-Con's ability to deal with its August 2021 preferred units through its credit facility. This reinforces that the preferred unitholders are essentially in control of what happens to Mid-Con.
Credit Facility Borrowing Base
Mid-Con's credit facility borrowing base was reduced by 14% from $110 million to