Obsidian Energy Announces Proposed Issuance of up to $125.0 Million Senior Unsecured Notes and New S | OBE Message Board Posts


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Msg  21727 of 21742  at  7/19/2022 8:20:24 PM  by

shiftsuper175607


Obsidian Energy Announces Proposed Issuance of up to $125.0 Million Senior Unsecured Notes and New Syndicated Credit Facilities

 
  • Proposed issuance of up to $125.0 million five-year senior unsecured notes
  • Proposed new syndicated credit facilities provide up to $225.0 million of available capacity

Calgary, Alberta--(Newsfile Corp. - July 19, 2022) - OBSIDIAN ENERGY LTD. (TSX: OBE) (NYSE American: OBE) ("Obsidian Energy", the "Company", "we", "us" or "our") announces the proposed private placement of senior unsecured notes and proposed new syndicated credit facilities.

Obsidian Energy intends to undertake a proposed private placement of five-year senior unsecured notes (the "Notes") in the amount of up to $125.0 million (the "Offering"), subject to market and other conditions as part of our debt refinancing. In connection with the private placement of the Notes, Obsidian Energy also intends to enter into new syndicated credit facilities with borrowing capacity of up to $225.0 million (the "New Credit Facilities"), as further described below. Subject to completion of the Offering and entering into the New Credit Facilities, Obsidian Energy intends to use the net proceeds of the Offering, together with initial draws on the New Credit Facilities, to repay all of our existing senior secured notes due November 30, 2022, in accordance with the terms thereof, repay the outstanding balances under our existing credit facilities due November 30, 2022, and repay the PROP limited recourse loan due on December 31, 2022, which was incurred by the Company in connection with our 2021 acquisition of the remaining 45 percent interest in the Peace River Oil Partnership.

The Notes will not be qualified for distribution to the public or registered under the securities laws of any province or territory of Canada or in the United States. They will only be offered in the provinces of Canada and in the United States pursuant to applicable exemptions from the prospectus and registration requirements thereunder.

Upon closing of the Offering, the Company intends to enter into the New Credit Facilities with a syndicate of lenders including the Royal Bank of Canada, Bank of Montreal and Canadian Western Bank, which will provide for up to $225.0 million available to be drawn. The $225.0 million of availability will consist of $175.0 million revolving syndicated credit facilities (the "New Syndicated Facilities") and up to $50.0 million non-revolving term loan (the "New Term Loan"). We expect to utilize approximately $30.0 million of the New Term Loan; together with approximately $130.0 million of the New Syndicated Facilities and assuming the gross proceeds from the proposed issuance of $125.0 million of Notes to complete the refinancing.

The revolving period of the New Syndicated Facilities will end on the first anniversary of the date they become available (which is anticipated to be July 26, 2023, with a term out period ending on the first anniversary of the end of the revolving period (which is anticipated to be July 26, 2024), subject to customary annual extension terms. The New Syndicated Facilities will also have semi-annual borrowing base redeterminations in May and November of each year. The maturity date of the New Term Loan will be December 31, 2022.



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