CALGARY, June 3, 2019 /CNW/ – OBSIDIAN ENERGY LTD. (TSX – OBE, NYSE – OBE.BC) (“Obsidian Energy“, the “Company“, “we“, “us” or “our“) announces the Company’s banking syndicate has extended the syndicated credit facility redetermination date until June 30, 2019 as the Company completes marketing of its previously announced unsecured bond offering and as our partner progresses through its right of first refusal and tag-along provisions in regard to the Peace River Oil Partnership disposition. The completion of an unsecured bond offering is subject to market conditions and acceptable terms. Proceeds of the offering would be used to repay existing debt.
The borrowing base under the syndicated credit facility will remain at $550 million with capacity of $460 million during the extension period. Additionally, under the terms of the syndicated credit facility, the Company will be required to have a minimum Liability Management Rating (“LMR“) of 1.50 going forward. Currently, the Company’s LMR is approximately 1.74.