Ovintiv amends, restates $3.5 billion U.S., Canadian credit facilities

By William Gullotti

Buffalo, N.Y., April 7 – Ovintiv Inc., the parent of Ovintiv Canada ULC (formerly Encana Corp.), entered into amended and restated credit agreements on April 1 for its U.S. and Canadian credit agreements, according to an 8-K filing with the Securities and Exchange Commission.

U.S. credit agreement

The amended U.S. credit agreement with JPMorgan Chase Bank NA as administrative agent, provides Ovintiv with $2.2 billion of total revolving commitments.

Borrowings from the U.S. revolver will bear interest at SOFR plus 100 basis points to 200 bps, based on ratings. Fees for letters of credit will also range from 100 bps to 200 bps determined in the same manner.

The company will also pay a commitment fee on the average daily outstanding available amount of credit ranging from 10 bps to 35 bps, likewise based upon credit rating.

JPMorgan Chase Bank NA, RBC Capital Markets, Canadian Imperial Bank of Commerce, Citibank NA and TD Securities are joint bookrunners and together with BMO Capital Markets and Bank of Nova Scotia, are joint lead arrangers. Bank of Montreal and Bank of Nova Scotia are the documentation agents.

The U.S. credit agreement matures on July 15, 2026 and is extendable from time to time, but not more than once per calendar year, for a period not longer than five years plus 90 days from the date of the extension request.

Ovintiv’s obligations under the U.S. credit agreement are guaranteed by Ovintiv Canada ULC and its successors.

Canadian credit agreement

Under the amended Canadian credit agreement with Royal Bank of Canada as administrative agent, the company is provided with revolving commitments of $1.3 billion with a maturity date of July 15, 2026, unless extended under the same terms and conditions defined in the U.S. agreement.

The facility bears interest at SOFR plus a margin ranging from 80 bps to 225 bps, based on ratings. Ovintiv will also be responsible for a standby fee ranging from 16 bps to 45 bps, likewise based on ratings.

RBC Capital Markets, JPMorgan Chase Bank, NA, Toronto Branch, Canadian Imperial Bank of Commerce, TD Securities and Citibank, NA, Canadian Branch are the lead arrangers and bookrunners. BMO Capital Markets and Bank of Nova Scotia are also joint lead arrangers as well as documentation agents.

Obligations under the Canadian credit agreement are guaranteed by Ovintiv Inc.

Proceeds are available for general corporate purposes.

The company is an oil and gas exploration and development company, based in Denver, Colo.

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