Hammerhead Energy raises credit facility by C$100 million, adds lender

Chicago, Oct. 3 – Hammerhead Energy Inc. expanded its credit facility with existing lenders and added Bank of Montreal to the syndicate to raise borrowings to C$450 million from C$350 million, according to a 6-K filing with the Securities and Exchange Commission.

The credit agreement expansion is effective as of Sept. 27.

A portion of the proceeds were used to repay $63.7 million, or C$86 million, of term debt prior to maturity. The repayment helps to reduce interest expense and eliminate any restrictions on Hammerhead instituting a return of capital strategy for the benefit of its shareholders.

The company plans to formally communicate a return of capital policy with the release of third quarter results in November.

Hammerhead is a Calgary, Alta.-based privately held oil and gas producer. Hammerhead Resources Inc., the predecessor entity to Hammerhead Resources ULC, a wholly owned subsidiary of Hammerhead, was formed in 2009.

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