SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report: December 23, 1999
Commission file number: 000-23701
SOUTHWEST ROYALTIES, INC. SOUTHWEST ROYALTIES
(Exact Name of Registrant as HOLDINGS, INC.
Specified in Its Charter) (Exact Name of Registrant as
Specified in Its Charter)
Delaware Delaware
(State or Other Jurisdiction of (State or Other Jurisdiction of
Incorporation or Organization) Incorporation or Organization)
75-1917432 75-2724264
(I.R.S. Employer Identification (I.R.S. Employer Identification
Number) Number)
407 North Big Spring, Suite 300
Midland, Texas 79701
(Address of Principal Executive (Zip Code)
Offices)
Registrants' Telephone Number, Including Area Code: (915) 686-
9927
None
(Former name or former address, if changed since last report.)
The total number of pages contained in this report is 4.
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Item 5. Other Events
Southwest Royalties Inc. ("Southwest"), is currently
negotiating a $50 million revolving line of credit with BankOne
Texas, N.A. (the "Credit Facility") which will mature June 30,
2001. As currently contemplated, the Credit Facility will be
secured by substantially all of Southwest's proved oil and gas
properties and will be guaranteed, on an unsecured basis, by
Southwest Royalties Holdings, Inc., Southwest's parent company.
The Credit Facility will contain covenants which limit loans,
advances, investments, and dividends and set a minimum interest
coverage ratio for Southwest. In addition, as a credit
enhancement, El Paso Energy Corporation will agree to purchase
BankOne Texas, N.A.'s note or a participation in the note in
certain circumstances. The funds from the Credit Facility may be
used for working capital and other general corporate purposes,
including the repurchase of a portion of Southwest's outstanding
10.5% Senior Notes due 2004.
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SIGNATURES
SOUTHWEST ROYALTIES, INC.
Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
SOUTHWEST
ROYALTIES, INC.
By:
/s/ Bill E. Coggin
- -------------------------
Bill E. Coggin, Vice President
and
Chief Financial Officer
Date:
December 23, 1999
Pursuant to the requirements of the Securities Exchange Act
of 1934, this report has been signed below by the following
persons on behalf of the registrant and in the capacities and on
the date indicated.
Date: December 23, 1999 /s/ Bill E. Coggin
----------------------------------
Bill E. Coggin, Vice President and
Chief Financial Officer
<PAGE>
SIGNATURES
SOUTHWEST ROYALTIES HOLDINGS, INC.
Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
SOUTHWEST
ROYALTIES HOLDINGS, INC.
By:
/s/ Bill E. Coggin
- -------------------------
Bill E. Coggin, Vice President
and
Chief Financial Officer
Date:
December 23, 1999
Pursuant to the requirements of the Securities Exchange Act
of 1934, this report has been signed below by the following
persons on behalf of the registrant and in the capacities and on
the date indicated.
Date: December 23, 1999 /s/ Bill E. Coggin
----------------------------------
Bill E. Coggin, Vice President and
Chief Financial Officer
<PAGE>
