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Highwood Oil Company Ltd. Announces Closing on Previously Announced Disposition of Clearwater Assets for $40.8 Million in Cash and Amendment of Credit Facility
Highwood Oil Company Ltd. Announces Closing on Previously Announced Disposition of Clearw...
About this update from Highwood Asset Management Ltd
[{"type":"text","content":"\n \n \n \n Highwood Oil Company Ltd. Announces Closing on Previously Announced Disposition of Clearwater Assets for $40.8 Million in Cash and Amendment of Credit Facility\n \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 Canada NewsWire\n \n \n \n \n \n /NOT FOR DISSEMINATION IN THE U.S. OR THROUGH U.S. NEWSWIRES/\n \n \n \n \n CALGARY, AB\n \n ,\n \n Dec. 21, 2020\n \n /CNW/ - Highwood Oil Company Ltd. (\"\n \n HOCL\n \n \", \"\n \n Highwood\n \n \" or the \"\n \n Company\n \n \") (TSXV: HOCL) announces the closing of its previously announced\n \n Clearwater\n \n disposition (the \"Clearwater Disposition\") and revisions to the Company's credit agreement.\n \n \n \n \n \n \n \n \n \n \n Closing of Clearwater Disposition\n \n \n \n Highwood is pleased to announce the successful closing of the Clearwater Disposition to Tamarack Acquisition Corp., a wholly owned subsidiary of Tamarack Valley Energy Ltd., for cash consideration of\n \n $40.8 million\n \n . Proceeds will be used to repay amounts owing under the Company's previous credit facility and other working capital deficits. Highwood is now positioned to achieve go forward shareholder value through a cleaner and less leveraged balance sheet.\n \n \n \n Second Amended and Restated Credit Agreement (the \"2\n \n nd\n \n ARCA\")\n \n \n \n The Company, together with its sole lender, has executed a 2\n \n nd\n \n ARCA. The 2\n \n nd\n \n ARCA is comprised of a\n \n $10.0 million\n \n conforming operating facility with a maturity date of\n \n May 31, 2021\n \n and is no longer a reserve-based lending facility.\n \n \n The Company will be required to maintain a current ratio of not less than 1.0:1.0 and such ratio is to be tested at the end of each fiscal quarter. The Company is required to maintain a net debt to cash flow ratio no greater than 3.0 for the fiscal quarter ended\n \n December 31, 2020\n \n and 2.0:1.0 as at the last day of each fiscal quarter beginning\n \n March 31, 2021\n \n .\n \n \n \n Oil and Gas Measures\n \n \n \n \n Readers should see the \"Selected Tech...