Obsidian Energy note maturities revised, financial covenants amended

By Sarah Lizee

Olympia, Wash., March 16 – Obsidian Energy Ltd. reached an agreement with its noteholders to align all maturity dates to Nov. 30, 2021, according to a press release.

Specifically, the senior notes previously maturing on March 16, 2020, May 29, 2020 and Dec. 2, 2020 will be extended to Nov. 30, 2021.

The senior notes maturing Nov. 30, 2021 will remain the same.

Additionally, the senior notes that were due Dec. 2, 2022 and Dec. 2, 2025 will now mature on Nov. 30, 2021 as well.

Also, if the end date of the revolving period on the syndicated credit facility is accelerated to April 1, 2021, then the senior notes’ maturities will also be accelerated to that date.

Given the current fall in oil prices and other market factors, the noteholders have also agreed in principle to amend the company’s senior debt and total debt to adjusted EBITDA covenants as follows, subject to the approval of members of the syndicated bank facility:

• For the period Jan. 1 to June 30, the maximum senior debt to adjusted EBITDA ratio will be less than or equal to 3.5 to 1.0;

• For the period July 1 to Sept. 30, the maximum for both the senior debt and total debt to adjusted EBITDA ratios will be less than or equal to 4.1 to 1.0; and

• For the period Oct. 1 to June 30, 2021, the maximum for both the senior debt and total debt to adjusted EBITDA ratios will be less than or equal to 6 to 1.

The implementation of the agreement reached with noteholders is subject to the execution of definitive documentation by March 31. If execution of the definitive documentation is not completed by then, the senior note originally maturing on March 16 will mature on April 7.

The company said it also reached an agreement with its building landlord on renewed lease terms for its Calgary office space. The agreement with the building landlord requires the execution of definitive documentation by March 31 and is subject to some consents.

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.