Journey Energy Inc. Completes Debt Restructuring

About this update from Journey Energy, Inc.

[{"type":"text","content":"\n \n \n \n Journey Energy Inc. Completes Debt Restructuring\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 \n \n \n \n \n \n Canada NewsWire\n \n \n CALGARY, AB, Oct. 30, 2020\n \n \n \n \n \n CALGARY, AB\n \n ,\n \n Oct. 30, 2020\n \n /CNW/ - Journey Energy Inc. (TSX: JOY) (OTCQX: JRNGF) (\"\n \n Journey\n \n \" or the \"\n \n Company\n \n \") is very pleased to announce the closing of an agreement for the settlement of its syndicated bank borrowings.\n \n \n Journey has secured a\n \n $38 million\n \n term-debt facility from its major shareholder, Alberta Investment Management Corporation (\"\n \n AIMCo\n \n \"), to fund the settlement of its\n \n $75 million\n \n credit facility with its syndicate of first-lien lenders.  In addition to the initial\n \n $38 million\n \n payment to the banking syndicate, Journey will also be contingently liable to pay the syndicate a maximum of\n \n $5.75 million\n \n over a three-year period with any payments made tied to various levels of mixed, sweet, blended oil prices at the\n \n Edmonton, Alberta\n \n hub (\"\n \n MSW\n \n \") as reported by Natural Resources Canada.  The maximum payment for 2021 is capped at\n \n $750 thousand\n \n ; for 2022 the cap is\n \n $2.25 million\n \n and for 2023 there is no maximum except for the overall, aggregate maximum of\n \n $5.75 million\n \n .  In all three years, there are graduated payments between zero and the capped maximum based on average MSW prices for the respective year.  The intent is to have no payments if MSW prices are below\n \n $50\n \n /bbl, while maximum payments will occur if the following thresholds are achieved:\n \n \n \n 2021:\n \n $750 thousand\n \n if MSW is greater than\n \n $52.50\n \n /bbl\n \n \n 2022:\n \n $2.25 million\n \n if MSW is greater than\n \n $56.67\n \n /bbl\n \n \n 2023:\n \n $5.75 million\n \n (minus any prior year payments) if MSW is greater than\n \n $80\n \n /bbl\n \n \n \n AIMCo's\n \n $38 million\n \n secured term debt facility has been provided in three tranches.  The first tranche is for a principal amount of\n \n $15 million...

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