NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  NOTE 22 – CREDIT FACILITIES continued  Senior Credit Facility  - 87 -  The Company capitalised $3.4 million and $1.3 million of interest expense during the years ended 31 December  2014 and 2013, respectively. For the years 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  was $95.0 million outstanding under the Company’s Senior Credit Facility. As at 31 December 2014, the Company  was in compliance with all restrictive financial and other covenants under the Senior Credit Facility.  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. 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.  For the years 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.  The Company is also required under our Junior Credit Facility to maintain the following financial ratios:  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 Eurodollar 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.  • 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.