Advantage Announces A Revised Credit Facility of $525 Million And Increased Financial Flexibility

About this update from Advantage Energy Ltd

[{"type":"text","content":"\n\n\n\n(AAV - TSX, AAV - NYSE)\n\n\nCALGARY, Aug. 13 /CNW/ - Advantage Oil & Gas Ltd. ("Advantage" or the\n"Corporation") announced today that its lenders have completed their review of\nthe borrowing base subsequent to the previously announced closing of the asset\ndispositions. Gross proceeds of $252.6 million were received from the asset\ndispositions and Advantage's credit facility was revised from $710 million to\n$525 million. Advantage's current debt is approximately $300 million resulting\nin an unutilized capacity of approximately $225 million on our credit\nfacility. As a result, Advantage has significantly improved its financial\nflexibility in support of future capital program requirements and general\ncorporate purposes.\n\n\nAdvantage's credit facility of $525 million is comprised of a $20 million\nrevolving operating loan facility and a $505 million extendible revolving\ncredit facility (the "Credit Facilities"). The Credit Facilities are provided\nby a syndicate of financial institutions with various borrowing options\navailable under the Credit Facilities, including prime rate based advances, US\nbase rate advances, US dollar LIBOR advances and bankers' acceptances loans.\nThe interest rates applicable to the Credit Facilities are based on either\nprime rate, US base rate, LIBOR or bankers' acceptance rates at the\nCorporation's option, subject to certain basis point or stamping fee\nadjustments ranging from 1.5% to 4.0%, depending on the Corporation's debt to\ncash flow ratio. The Credit Facilities are secured by a $1 billion floating\ncharge demand debenture, a general security agreement and a subordination\nagreement from the Corporation covering all assets and cash flows. The amounts\navailable to Advantage from time to time under the Credit Facilities are based\nupon the borrowing base determined by the lenders and which is redetermined on\na semi-annual basis by those lenders. The borrowing base constitutes a\nrevolving facility for a 364 day term which is extendible annually for a\nfurther 364 day revolving period, subject to a one year term maturity as to\nlenders not agreeing to such annual extension, with the next annual review\nanticipated to take place in June 2010. The Credit Facilities contain standard\ncommercial covenants for credit facilities of this nature. Th...

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