Obsidian extends date by which conditions must be met for credit facility

By Wendy Van Sickle

Columbus, Ohio, March 4 – Obsidian Energy Ltd. said it reached an agreement with its syndicated credit facility lenders that extends the date by which certain conditions must be met to March 13 from March 4, according to a news release on Wednesday.

Those conditions include extending the maturity dates of the company's outstanding senior notes due on March 16, May 29 and Dec. 2, 2020, totaling US$27 million to at least Nov. 30, 2021.

Additionally, the net rent amount payable under the company's office lease must not exceed $10 million per annum for the years 2020 through 2024 and C$833,333 for the month of January 2025, when the lease expires. Also, the building landlord must agree to indemnify the company on all existing subleases.

In the event the Obsidian cannot reach agreement to meet those conditions with both the noteholders and the building landlord by March 13, then its C$450 million syndicated credit facility will cease to revolve with a term out final maturity date of April 1, 2021.

If the conditions are met by March 13, the credit facility revolving period will end May 31, 2021 with the end date of the term period being Nov. 30, 2021.

Also if the conditions are met, a revolving period reconfirmation will occur on June 22 on which date the lenders may accelerate the end date of the revolving period to June 30 with the end date of the term period also accelerated to April 1, 2021; and the next scheduled borrowing base redetermination will occur on Nov. 30, 2020.

Obsidian said it continues to be in discussions with its noteholders and landlord.

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