CALGARY – OBSIDIAN ENERGY LTD. (TSX – OBE, NYSE – OBE.BC) (“Obsidian Energy“, the “Company“, “we“, “us” or “our“) announces that, further to our press release on February 27, 2020, we have reached an agreement with our syndicated credit facility lenders to extend the date by which certain conditions are required to be met from March 4, 2020 to March 13, 2020. Those conditions include:
- the maturity dates of the Company’s outstanding senior notes due on March 16, 2020, May 29, 2020 and December 2, 2020, totaling US$27 million, have been extended to at least November 30, 2021;
- the net rent amount payable under the Company’s office lease will not exceed an aggregate amount of $10 million per annum for the years 2020 through 2024 and $833,333 for the month of January 2025, when the lease expires; and
- the building landlord has agreed to indemnify the Company on all existing subleases.
In the event the Company cannot reach agreement to meet the above conditions with both the noteholders and the building landlord by March 13, 2020, then our $450 million syndicated credit facility will cease to revolve with a term out final maturity date of April 1, 2021. If the above conditions are met on or before March 13, 2020, the $450 million syndicated credit facility will have the following terms:
- revolving period under the agreement will end May 31, 2021 with the end date of the term period being November 30, 2021;
- a revolving period reconfirmation date will occur on June 22, 2020, whereby the lenders may accelerate the end date of the revolving period to June 30, 2020 with the end date of the term period also concurrently accelerated to April 1, 2021; and
- the next scheduled borrowing base redetermination will occur on November 30, 2020.
The Company continues to be in discussions with the noteholders and building landlord on these outstanding items in order to finalize the syndicated credit facility extension.