CALGARY, ALBERTA–(Marketwired – Dec. 21, 2016) – Delphi Energy Corp. (TSX:DEE) (“Delphi” or the “Company“) is pleased to announce that it has entered into a term sheet with respect to a new credit facility with Alberta Treasury Branches (“ATB”) as syndicate lead, of which the syndicate will also include the Bank of Nova Scotia (“Scotia”).
New Credit Facility
The new arrangement will provide Delphi with an $80 million senior secured revolving credit facility that will be available on a fully revolving basis until May 31, 2017. ATB and Scotia have collectively committed to the new credit facility subject to the finalization of documentation. Definitive credit agreements are expected to be signed before mid-January 2017, at which time the Company’s existing credit facility will be repaid in full and terminated. As a result of the previously announced strategic transaction (the “Transaction”) the Company’s current $85 million borrowing base will be reduced by $5 million.
The closing of the Transaction has significantly enhanced Delphi’s financial position by enabling the Company to reduce total leverage while accelerating production and cash flow growth without the immediate need to raise equity.
2017 Preliminary Guidance
The Company previously announced that it planned to release updated full year guidance for 2016 and initial guidance estimates for 2017 on or before, December 21, 2016, however with the ongoing completion operations at 16-9-60-23W5M and 14-21-60-23W5M, the release of this guidance has been deferred to January 2017.
About Delphi Energy Corp.
Delphi Energy Corp. is an industry-leading producer of liquids-rich natural gas. The Company has achieved top decile results through the development of our high quality Montney property, uniquely positioned in the Deep Basin of Bigstone, in northwest Alberta. Delphi continues to outperform key industry players by improving operational efficiencies and growing our dominant Bigstone land position in this world-class play. Delphi is headquartered in Calgary, Alberta and trades on the Toronto Stock Exchange under the symbol DEE.