CALGARY – Bonavista Energy Corp. says it has completed a recapitalization plan that will result in a nickel-per-share payout for its shareholders and its delisting from the Toronto Stock Exchange.
CEO Jason Skehar says the transaction removes crippling debt and means the oil and gas producer will be able to “pledge sustainability” in almost any commodity price environment.
Bonavista announced in June an agreement with lenders that would eliminate about half of its outstanding debt but leave existing shareholders with only seven per cent of the company.
The proposal, since approved by shareholders, debtholders and the courts, is designed to reduce total debt by about $483 million or 56 per cent and lower annual cash interest payments by $16 million or 43 per cent.
Under the deal, existing shareholders were given the option to sell their shares to G2S2 Capital, a company controlled by director and 16 per cent shareholder George Armoyan, for five cents each.
Bonavista recently reported second-quarter production of 65,300 barrels of oil per day, down two per cent from the first quarter mainly due to the voluntary curtailment of 1,150 boe/d due to volatile pricing.