Arcan cuts syndicated credit facility to C$180 million after lender review

By Toni Weeks

San Luis Obispo, Calif., June 9 – Arcan Resources Ltd. said it amended its credit facility, reducing it to C$180 million from C$190 million and extending it to May 28, 2015, according to a press release.

The facility, which consists of a C$170 million syndicated revolving credit facility and a C$10 million non-syndicated revolving operating credit facility, was amended following the lenders’ annual review of the company’s reserves for the period ending Dec. 31 and the subsequent borrowing base determination of C$180 million.

The next lender review will take place on or before Oct. 31.

As of June 6, Arcan had a total of C$155 million drawn under the credit facilities and is compliant with its covenants, the release noted.

The lender syndicate is led by Alberta Treasury Branches and includes National Bank of Canada, Bank of Nova Scotia, Canadian Imperial Bank of Commerce and Royal Bank of Canada.

Arcan Resources is an oil and natural gas exploration and production company based in Calgary, Alta.

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