CALGARY, AB – Topaz Energy Corp. (TSX: TPZ) (“Topaz” or the “Company”) is pleased to announce that it has entered into an amended and restated credit agreement with a syndicate of Canadian banks providing for a $300 million combined operating and syndicated credit facility due February 19, 2024 (“Amended Credit Facility”). The Amended Credit Facility replaces the Company’s prior credit facility, which was undrawn, due June 10, 2022, and provided for aggregate borrowing capacity of $125 million (“Prior Credit Facility”). The Amended Credit Facility provides for a permitted increase to $400 million, subject to agent consent, and is subject to covenants which are consistent with the covenants under the Prior Credit Facility.
The Company’s business model is supported by its conservative capital structure which currently has no debt, a net positive cash position, and significant free cash flow which, together, provide financial flexibility. The Amended Credit Facility includes improved revisions to the variable grid used to determine the interest rate payable on borrowings by the Company, which results in enhanced financial flexibility at attractive pricing to position the Company to strategically execute accretive growth transactions.
2020 Results and Updated 2021 Guidance
Topaz plans to release its annual and fourth quarter 2020 results and updated 2021 guidance estimates on Wednesday, March 17, 2021 after markets close. Topaz will host a conference call on Thursday, March 18, 2021 starting at 9 a.m. MST (11 a.m. EST). To participate in the conference call, please dial 1-888-664-6392 (North American toll free) a few minutes prior to the call. Conference ID is 26428688.
ABOUT THE COMPANY
Topaz is a unique royalty and energy infrastructure company focused on generating free cash flow growth and paying reliable and sustainable dividends to its shareholders, through its strategic relationship with one of Canada’s largest natural gas producers, Tourmaline, an investment-grade senior Canadian E&P company, and leveraging industry relationships to execute complementary acquisitions from other high-quality energy companies, while maintaining its commitment to environmental, social and governance best practices.