Maturity dates of both credit facility and senior notes extended to November 2022
Calgary, Alberta – OBSIDIAN ENERGY LTD. (TSX: OBE) (OTCQX: OBELF) (“Obsidian Energy“, the “Company“, “we“, “us” or “our“) is pleased to announce that the Company has executed amending agreements to extend both our syndicated credit facility and senior notes maturity date to November 30, 2022.
“We are very pleased with the successful completion of our extension,” said Stephen Loukas, Obsidian Energy’s Interim President and CEO. “With the credit facility and senior notes now in place until November 2022, and encouraging current commodity prices, we are in a strong financial position to build on our drilling success in the Cardium. We anticipate continuing the operational momentum of our first half 2021 development program with a substantial second half drilling program, all of which is expected to be fully funded through funds flow from operations. We appreciate the support of our lenders and the patience of our shareholders as we completed this process and now look forward to creating incremental value for all of our stakeholders.”
A summary of the key terms is outlined below.
SYNDICATED CREDIT FACILITY
- The aggregate amount drawn or available to be drawn under the syndicated credit facility is $440 million.
- The $440 million of availability consists of a $225 million revolving credit facility and a $215 million non-revolving term loan (comprised of existing drawn amounts under the revolving syndicated credit facility which have been converted to a term loan).
- The revolving period under the syndicated credit facility has been extended to May 31, 2022, with the end date of the term period extended to November 30, 2022.
- The maturity date of the non-revolving term loan is also November 30, 2022.
- The next scheduled borrowing base redeterminations will occur on November 30, 2021 and May 31, 2022.
- A revolving period reconfirmation date will occur on January 17, 2022, whereby, on or prior to such date, lenders may accelerate the end date of the revolving period to February 1, 2022. In this case, the end date of the term period would remain unchanged at November 30, 2022.
- The Company’s revolving credit facility will have a one-time adjustment to reduce our undrawn availability to $35 million at December 31, 2021. Any borrowing availability at this time in excess of that amount will be used to reduce amounts outstanding on the non-revolving term loan and senior notes.
- The senior notes maturity date is extended to November 30, 2022 (previous maturity date of November 30, 2021).
- The existing interest rate increased by approximately 2.1 percent, which results in an average interest rate of approximately 7.3 percent.