Ovintiv inks U.S., Canadian credit agreements totaling $4 billion

By Rebecca Melvin

New York, Jan. 29 – Ovintiv Inc., the newly formed parent of Ovintiv Canada ULC (formerly Encana Corp.), entered into a U.S. credit agreement and a Canadian credit agreement on Wednesday, according to an 8-K filing with the Securities and Exchange Commission.

U.S. credit agreement

Under the U.S. credit agreement, inked on Jan. 27 with JPMorgan Chase Bank NA, as administrative agent, the company is provided with total revolving commitments of $2.5 billion for 4.5 years.

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, 2024 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. The facility is unsecured and bears interest at Libor plus a margin ranging from 100 basis points to 200 bps, based on ratings.

Ovintiv’s obligations under the U.S. credit agreement are guaranteed by Newfield Exploration Co., an indirect, wholly-owned subsidiary of Ovintiv.

Canadian credit agreement

Under the Canadian credit agreement, with Royal Bank of Canada, as administrative agent, the company is provided with revolving commitments of $1.5 billion with a maturity date of July 15, 2024, unless extended.

The facility is unsecured, and bears interest at Libor plus a margin ranging from 80 bps to 225 bps, 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.

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

© 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.