NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
NOTE 22 – CREDIT FACILITIES continued 
 
The principal amount of the loans borrowed under our Junior Credit Facility is due in full on the maturity date.  
Interest on the Junior Credit Facility accrues at a rate equal to the greater of (i) 8.50% or (ii) a base rate (being, at 
our option, either (a) LIBOR for the applicable interest period (adjusted for Eurodolla r Reserve Requirements) or (b) 
the greatest of (x) the prime rate announced by Wells Fargo Bank, N.A., (y) the federal funds rate plus 0.50% and (z) 
one-month adjusted LIBOR plus 1.00%), plus a margin of either 6.5% or 7.5%, based on the base rate selected . 
 
The Company is also required under our Junior Credit Facility to maintain the following financial ratios: 
• a current ratio, consisting of consolidated current assets including undrawn borrowing capacity to 
consolidated current liabilities, of not less than 1.0 to 1.0 as of the last day of any fiscal quarter; 
• a maximum leverage ratio, consisting of consolidated debt to adjusted consolidated EBITDAX (as defined 
in the Junior Credit Facility), of not greater than 4.5 to 1.0 as of the last day of any fiscal quarter 
(beginning 30 September 2013); and 
• an asset coverage ratio, consisting of PV10 to consolidated debt, of not less than 1.5 to 1.0, as of certain 
test dates. 
 
For the year s ended 31 December 2014 and 2013, the Company capitalised $ 0.7 million and $0.3 million, 
respectively, of financing costs related to the Junior Credit Facility, which offset the principal  balance. As at 31 
December 2014 there was $35.0 million outstanding under the Company’s Junior Credit Facility.  As at 31 December 
2014, the Company was in compliance with all restrictive financial and other covenants under the Junior Credit 
Facility. 
 
Senior Credit Facility 
On 31 December 2012, Sundance Energy entered into a credit agreement with Wells Fargo Bank, N.A. (the “Senior 
Credit Facility”), pursuant to which up to $300 million is available on a revolving basis.  The borrowing base under 
the Senior Credit Facility is determined by reference to the value of the Company’s proved reserves.  The agreement 
specifies a semi -annual borrowing base redetermination and the Company can request two additional 
redeterminations each year.   The borrowing capacity was  increased from prior year to $ 110 million as at 31 
December 2014 based on Company reserves as at 31 December 2014.  As at 31 December 2014, the Company had 
$15 million undrawn on the Senior Credit Facility .  In conjunction with the increase in the borrowing base, the 
Company has expanded the syndicate of banks under the Senior Credit Facility.  With Wells Fargo as administrative 
agent, Bank of America Merrill Lynch and the Bank of Nova Scotia have now joined the banking group.  
 
Interest on borrowed funds accrue, at the Company’s option, of i) LIBOR plus a margin that ranges from 175 to 275 
basis points or ii) the Base Rate, defined as a rate equal to the highest of (a) the Federal Funds Rate plus ½ of 1%, (b) 
the Prime Rate, or (c) LIBOR plus a margin that ranges from 75 to 175 basis points. The applicable margin varies 
depending on the amount drawn.   The Company also pays a commitment that ranges from 37.5 to 50 basis points 
on the undrawn balance of the borrowing base.  The agreement has a five-year term and contains both negative and 
affirmative covenants, including minimum current ratio and maximum leverage ratio requirements consistent with 
the Junior Credit Facility’s. Certain development and production assets are pledged as collateral and the facility is 
guaranteed by the Parent Company.   
 
For the year s ended 31 December 2014 and 2013, the Company capitalised nil  and $0.2 million, respectively, of 
financing costs related to the Senior Credit Facility, which offset the principal balance. As at 31 December 2014 there