CALGARY, Alberta – InPlay Oil Corp. (TSX: IPO) (OTCQX: IPOOF) (“InPlay” or the “Company”) is pleased to announce that the annual renewal of its syndicated Senior Credit Facility by its lenders has been completed on a fully conforming basis.
InPlay’s Senior Credit Facility has been reconfirmed at $65 million, comprised of a $55 million revolving credit facility and a $10 million operating line of credit, with the maturity date being extended to May 30, 2022. The Senior Credit Facility has been amended to a fully conforming, revolving facility under substantially the same terms as our current revolving facility with the borrowing base next scheduled for semi-annual review by November 30, 2021 and annual review by May 31, 2022.
InPlay is also pleased to announce that Export Development Canada (“EDC”) has joined ATB Financial and National Bank of Canada as a member of the Senior Credit Facility syndicate. The addition of another lender in our syndicate provides additional financial flexibility for the future and is further evidence of the strong financial position of the Company. The renewed $65 million Senior Credit Facility in addition to our $25 million second lien four year term loan with the Business Development Bank of Canada provides $90 million of overall lending capacity to the Company. InPlay would like to thank all of our lending partners for their ongoing support.
The outcome of the Senior Credit Facility renewal is an extremely positive result for the Company. This renewal provides InPlay with expanded financial flexibility to execute its stated 2021 capital program, targeting additional free adjusted funds flow (“FAFF”)(1) to pay down debt and to potentially pursue other accretive development plans and strategic acquisition opportunities. The removal of the tranche B term facility component will also result in reduced annual interest costs on bank draws going forward. This renewal represents strong validation that InPlay has “weathered” the COVID storm and now finds itself in a position of strength to continue to provide top-tier light oil growth per share while also generating strong FAFF.
We anticipate providing an operations update pre-market July 6, 2021 and we look forward to continuing to share our upcoming results with our shareholders.