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Opti Canada gets commitment for $400 million term loan B
By Sara Rosenberg
New York, April 11 - Opti Canada Inc. has received a commitment for a $400 million seven-year term loan B that will be syndicated to institutional investors located primarily in the United States, according to a company news release.
RBC Capital Markets is the lead bank on the deal, with The Toronto-Dominion Bank, The Royal Bank of Scotland plc, The Bank of Nova Scotia and BNP Paribas (Canada) involved as well.
In addition, the company has received a commitment for a C$300 million six-month bridge loan that is expected to be drawn around mid-April for the repayment of the company's existing C$100 million facility.
Proceeds from the term loan B will be received in two installments over a six-month period and will be used to repay the C$300 million bridge loan and to fund previously announced oil sands expenditures for the Long Lake Project and expansion phases.
The term loan B is expected to close in May.
"This transaction is a planned progression in our capital structure," said Sid Dykstra, president and chief executive officer, in the release.
"Our success to date and the advanced state of phase 1 of the Long Lake Project enables OPTI to prudently add additional debt to our balance sheet. Most importantly, it will fund our previously announced initiatives, including activities that will result in the advancement of our expansion plans to reach 120,000 bbls/day production capacity net to OPTI by 2015."
Opti is a Calgary, Alberta-based company focused on developing the fourth integrated oil sands project in Canada, the Long Lake Project, in a 50/50 joint venture with Nexen Inc.
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