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Bonterra Energy Corp. Announces Business Development Bank of Canada Term Facility
Bonterra Energy Corp. Announces Business Development Bank of Canada Term Facility ...
About this update from Bonterra Energy Corp.
[{"type":"text","content":"\n\n\n\nBonterra Energy Corp. Announces Business Development Bank of Canada Term Facility\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\n\nCanada NewsWire\nCALGARY, AB, Aug. 20, 2020\n\n\n\nCALGARY, AB, Aug. 20, 2020 /CNW/ - Bonterra Energy Corp. (www.bonterraenergy.com) (TSX: BNE) (\"Bonterra\" or the \"Company\") is pleased to announce that it has entered into a non-binding term sheet (the \"BDC Term Sheet\") with the Business Development Bank of Canada (\"BDC\"), in partnership with its syndicate of lenders, for a non-revolving four year term facility of potentially up to $45 million and subject to formal credit approval from BDC and the syndicate. \nSubsequent to the end of the second quarter, on July 14, 2020, Bonterra's credit facility was confirmed at $300 million, comprised of a $125 million revolving facility, a $25 million operating facility and a $150 million term loan facility with the revolving period extended to August 31, 2020 and the credit facility maturing on April 28, 2021. On August 19, 2020 the Company entered into the BDC Term Sheet with the BDC under their Business Credit Availability Program (\"BCAP\") which, subject to the entering into of definitive agreements, will potentially provide the Company with an up to $45 million non-revolving, second lien, four year term facility (the \"BDC Term Facility\").  The BDC Term Facility will provide Bonterra with significant additional long-term liquidity at reasonable interest rates to withstand the impacts of the COVID-19 pandemic and allow the Company to continue pursuing development of its high-quality, Cardium light oil asset base in order to generate long-term, sustainable net asset value per share growth as the economy recovers.  Based on a successful outcome from the BDC program, Bonterra would deploy proceeds to re-initiate its capital program in late Q3 and early Q4 2020 and target production levels consistent with those realized in 2019, leading to enhanced liquidity and improved financial flexibility. \nTo further advance its abandonment program, Bonte...