CALGARY, June 30, 2016 /CNW/ – Cequence Energy Ltd. (“Cequence” or the “Company”) (TSX: CQE) is pleased to announce certain amendments to the Company’s senior credit facilities following a scheduled bank review with its syndicate of lenders. As part of such amendments, the Company’s borrowing base under the credit facilities has been redetermined at $20 million and the total debt to EBITDA covenant was removed. The revised borrowing base is anticipated to result in lower standby fees charged on unutilized amounts available under the credit facilities. As at March 31, 2016 the Company’s credit facilities were undrawn.
Cequence currently has total credit capacity of $80 million which is comprised of the senior credit facilities and $60 million in unsecured senior notes carrying a five year term (due October 2018). The Company believes this amount of credit capacity is sufficient to execute its capital plan which is primarily focused on cost reduction measures. The Company’s total year-end debt is forecast to be approximately $70 million.
Cequence is a publicly traded Canadian energy company involved in the acquisition, exploitation, exploration, development and production of natural gas and crude oil in western Canada. Further information about Cequence may be found in its continuous disclosure documents filed with Canadian securities regulators at www.sedar.com.