Obsidian Energy completes agreements with lenders, noteholders

By Sarah Lizee

Olympia, Wash., March 30 – Obsidian Energy Ltd. announced that it completed the agreements lenders and noteholders to renew its syndicated credit facility and amend its senior notes, according to a press release.

As previously reported, the company had reached agreements with its noteholders to align all maturity dates to Nov. 30, 2021.

The syndicated credit facility was amended so that the borrowing base and amount available under the credit facility are set at C$550 million and C$450 million, respectively.

The revolving period under the agreement was extended to May 31, 2021 with the end date of the term period extended to Nov. 30, 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.

The amendment also eliminated the debt to adjusted EBITDA covenants.

The company’s senior notes were also amended so that all notes will mature in 2021; if the end date of the revolving period on the syndicated credit facility is accelerated to April 1, 2021, then the senior notes will also be accelerated to that date; and the debt to adjusted EBITDA covenants were eliminated.

Specifically, the senior notes previously maturing on March 16, 2020, May 29, 2020 and Dec. 2, 2020 are being 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.

The company had previously said that the senior debt and total debt to adjusted EBITDA covenants would be amended 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 company said it also completed an agreement with its building landlord on renewed lease terms for its Calgary, Alta., office space. The agreement with the building landlord required the execution of definitive documentation by March 31 and was subject to some consents.

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

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