Saturn Oil to amend loan for additional $200 million for Viking buy

Chicago, May 31 – Saturn Oil & Gas Inc. plans to partially finance its acquisition of synergistic assets in the Viking area of West-central Saskatchewan for approximately $260 million with an amendment to its bank loan, according to a press release.

Saturn plans to amend and restate its senior secured loan agreement with its U.S.-based institutional lender for an additional $200 million of loan proceeds.

The loan will have a CDOR plus 1,150 basis points interest rate.

The loan will amortize over three years, with 50% repayable in the first year, 30% in the second year and 20% in the final year.

Based on forecast production rates and hedged commodity prices, the company said that it “anticipates repaying the loan in full well in advance of its scheduled amortization payments.”

The other part of the financing will come from a bought deal of subscription receipts.

Saturn Oil is a public energy company based in Calgary, Alta.

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