CALGARY, Alberta – Cardinal Energy Ltd. (“Cardinal” or the “Company“) (TSX: CJ) announces it has received approval from its syndicate of lenders to extend our credit facilities (“Facilities”). The Facilities were renewed at $225 million and extend the revolving period and maturity date to May 31, 2021 and May 31, 2022, respectively. In this renewal Cardinal has received reserve based lending commitments from two new lenders, Export and Development Canada and Canadian Western Bank, while one previous lender, National Bank Financial, has been asked to exit.
The $40.5 million lending commitment from EDC, based on its Business Credit Availability Program (the “BCAP”), has a tenure of up to two years and is renewable at maturity at EDC’s discretion. Cardinal’s syndicate of lenders has reviewed the Facilities and approved amendments to incorporate the EDC funding commitment and documentation supporting the lending commitment from EDC has been executed. Both new lenders join Cardinal’s syndicate of lenders as highly aligned capital partners. The new commitments allowed for the exit of one of Cardinal’s previous syndicate members and the reduction of commitments from two existing lenders while maintaining the $225 million credit facility borrowing base under the Facilities. The completion of the bank financing was a condition of the recently announced private offering of second lien notes and common shares. The combination of both of these transactions will provide Cardinal with strong capital providers and ample liquidity.