Legacy Reserves LP announced that it has executed a second lien term loan credit agreement with GSO Capital Partners LP to provide loans in an aggregate amount up to $300 million.  Advances under the Second Lien will be issued with an upfront fee of 2%, bear interest of 12.0% per annum and mature, subject to certain conditions, on August 31, 2021.  Legacy intends to use the initial $60 million of gross loan proceeds to repay outstanding indebtedness and pay associated transaction expenses. In connection with the foregoing transaction, Legacy entered into an amendment (the “Amendment”) to its revolving credit facility agreement to permit the Second Lien and included a reduction of the borrowing base from $630 million to $600 million. In addition, the Second Lien and the Amendment added a secured debt asset coverage covenant of 1.00 times starting with the fiscal quarter ended June 30, 2017 and a Secured Debt /EBITDA covenant starting with the fiscal quarter ended December 31, 2018, increased the mortgage requirement to 95% of the value of oil and natural gas properties, required 75% of projected oil and natural gas production from proved developed producing reserves to be hedged through 2018, and amended the interest coverage ratio to 2.00 times.

D. Dwight Scott, Senior Managing Director of Blackstone Group L.P. and Head of GSO's Energy business, will be added to the Board of Directors of Legacy Reserves GP, LLC, the general partner of Legacy, pursuant to the terms of a Director Nominating Agreement.