The extension affords Bonterra and its syndicate of lenders additional time to finalize definitive agreements related to the Business Development Bank of Canada (“BDC”) non-binding Term Sheet under their Business Credit Availability Program (“BCAP”), which would potentially provide the Company with an up to $45 million non-revolving, second lien, four year term facility (the “BDC Term Facility”). The BDC Term Facility offers Bonterra significant additional long-term liquidity at reasonable interest rates to withstand the impacts of the COVID-19 pandemic and allow the Company to continue pursuing development of its high-quality, Cardium light oil asset base in order to generate long-term, sustainable net asset value per share growth as the economy recovers.
Press Release by Obsidian on August 31, 2020
Bonterra also acknowledges the press release issued earlier this morning on August 31, 2020 by Obsidian Energy Ltd. (the “Obsidian Press Release”), whereby Obsidian expressed their interest in a potential transaction with Bonterra. At all times, Bonterra takes into consideration potential alternatives that could be of value and benefit to its stakeholders. Any unsolicited third-party expression of interest in a potential transaction is reviewed by Bonterra and its Board of Directors (and also, as appropriate, with its legal and financial advisors). With respect to the Obsidian Press Release, Bonterra confirms that the Company remains aware of Obsidian’s interest in a potential transaction. Bonterra does not intend to provide any further public announcements regarding the Obsidian Press Release and any matters referred to therein unless (i) future discussions with Obsidian, if any, result in a transaction, or (ii) the Company determines that disclosure is warranted and in accordance with the requirements of applicable securities law.
Bonterra Energy Corp. is a conventional oil and gas corporation with operations in Alberta, Saskatchewan and British Columbia, focused on its strategy of long-term, sustainable growth and value creation. The Company’s shares are listed on The Toronto Stock Exchange under the symbol “BNE”.