Surge Energy gets lender approval of C$90 million credit commitments

By Taylor Fox

New York, Nov. 3 – Surge Energy Inc. received lender approvals for C$90 million in new credit commitments, according to a news release.

The commitments include a new term loan facility, led by the Business Development Bank of Canada in partnership with Surge’s syndicate of lenders, for a non-revolving facility of C$40 million with attractive interest rates and a four-year term.

The commitments also include a credit commitment of up to C$50 million from Export Development Canada to join Surge’s existing C$335 million first-lien credit facility.

Subject to the closing of the facility, the syndicate has agreed to an extension of Surge's current credit facility to Dec. 31, 2021 from March 31, 2021 and the company's next semi-annual borrowing base redetermination will be shifted to June 30, 2021 from Dec. 15.

Surge anticipates that these new credit commitments, as well as the extension of the credit facility, will close on or about the week of Nov. 16.

Closing is subject to final documentation.

Surge Energy is a Toronto-based junior/intermediate oil and gas company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.