Athabasca may cut debt via sales proceeds; credit facility reaffirmed

By Wendy Van Sickle

Columbus, Ohio, Jan. 15 – Athabasca Oil Corp. said its banking syndicate has reaffirmed its C$120 million reserve-based credit facility, which remains undrawn following a large asset sale, the proceeds of which may be applied toward debt reduction.

Athabasca closed the previously announced sale of its Leismer pipelines and Cheecham storage terminal to Enbridge Inc. for a C$265 million cash consideration, according to a news release.

The company said it now has C$550 million of funding capacity, including C$135 million in available credit facilities, as well as C$325 million cash and cash equivalents and C$90 million Duvernay capital carry.

Its existing term debt is in place until 2022 with no maintenance covenants.

In addition to debt reduction, proceeds from the asset sale may be used for share buybacks or growth initiatives.

Athabasca is a Calgary, Alta.-based energy company focused on the development of thermal and light oil assets.

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