CALGARY, Feb. 27, 2020 /CNW/ – OBSIDIAN ENERGY LTD. (TSX – OBE, NYSE – OBE.BC) (“Obsidian Energy“, the “Company“, “we“, “us” or “our“) announces the extension of the Company’s syndicated credit facility with the underlying borrowing base and amount available under the syndicated credit facility set at $550 million and $450 million, respectively, subject to specific items being amended as discussed below. The amount available under the syndicated credit facility has been reduced by $10 million to the aforementioned $450 million level. Additional terms in the amending agreement are as follows:
- the revolving period under the agreement has been extended to May 31, 2021 with the end date of the term period extended to November 31, 2021;
- a revolving period reconfirmation date will occur on June 22, 2020, whereby the lenders may accelerate the end date of the revolving period to June 30, 2020 with the end date of the term period also concurrently accelerated to April 1, 2021; and
- the next scheduled borrowing base redetermination will occur on November 30, 2020.
The May 31, 2021 revolving period and corresponding November 30, 2021 term periods described above may be accelerated if by March 4, 2020, the following terms are not met:
- the maturity dates of the Company’s outstanding senior notes due on March 16, 2020, May 29, 2020 and December 2, 2020, totaling US$27 million, have been extended to at least November 30, 2021;
- the net rent amount payable under the Company’s office lease will not exceed an aggregate amount of $10 million per annum for the years 2020 through 2024 and $833,333 for the month of January 2025, when the lease expires; and
- the building landlord has agreed to indemnify the Company on all existing subleases.
Failure to satisfy the above terms on or before March 4, 2020 will result in an acceleration of the end date of the revolving period to March 4, 2020 and the end date of the term period to April 1, 2021.
The Company is in active negotiations with our noteholders and building landlord on these outstanding items in order to finalize the extension.