Obsidian Energy extends redetermination date for credit facility

By Sarah Lizee

Olympia, Wash., June 3 – Obsidian Energy Ltd. said the redetermination date of its syndicated credit facility was extended until June 30, 2019.

The company said it is working on completing marketing of its previously announced bond offering, and its partner is progressing through its right of first refusal and tag-along provisions relating to the Peace River Oil Partnership disposition.

The bond offering is subject to market conditions and acceptable terms. Proceeds of the offering would be used to repay existing debt.

The borrowing base under the syndicated credit facility will remain at $550 million with capacity of $460 million during the extension period.

Additionally, the company will be required to have a minimum liability management rating of 1.5 going forward. Currently, the rating is about 1.74.

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.