Obsidian Energy extends revolver, trims availability by C$10 million

By Sarah Lizee

Olympia, Wash., Feb. 27 – Obsidian Energy Ltd. said it extended its syndicated credit facility, with the underlying borrowing base and amount available under the facility set at C$550 million and C$450 million, respectively.

The amount available under the facility was reduced by C$10 million, according to a press release.

The revolving period was extended to May 31, 2021 with the end date of the term period extended to Nov. 31, 2021.

A revolving period reconfirmation date will occur on June 22, whereby the lenders may accelerate the end date of the revolving period to June 30 with the end date of the term period also concurrently accelerated to April 1, 2021.

The next scheduled borrowing base redetermination will occur on Nov. 30, 2020.

The revolving period and corresponding term periods may be accelerated if by March 4, the following terms are not met:

• The maturity dates of the company's outstanding senior notes due on March 16, 2020, May 29, 2020 and Dec. 2, 2020, totaling C$27 million, have been extended to at least Nov. 30, 2021;

• The net rent amount payable under the company's office lease will not exceed an aggregate amount of C$10 million per annum for the years 2020 through 2024 and C$833,333 for the month of January 2025, when the lease expires; and

• The building landlord has agreed to indemnify the company on all existing subleases.

Failure to satisfy those terms on or before March 4 will result in an acceleration of the end date of the revolving period to March 4 and the end date of the term period to April 1, 2021.

The company said it is in active negotiations with noteholders and its building landlord on the outstanding items in order to finalize the extension.

Obsidian Energy is a Calgary, Alta.-based oil and natural gas production company.

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