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BNK Petroleum Inc. Announces New Senior Credit Facility
BNK Petroleum Inc. Announces New Senior Credit Facility Canada NewsWire CAMARILL...
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[{"type":"text","content":"\n\n\n\nBNK Petroleum Inc. Announces New Senior Credit 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\n\n\n\n\n\n\nCanada NewsWire\nCAMARILLO, CA, June 14, 2017\n\n\n\nCAMARILLO, CA, June 14, 2017 /CNW/ - BNK Petroleum Inc. (the \"Company\") (TSX: BKX) is pleased to announce that its indirect wholly owned subsidiary BNK Petroleum (US) Inc. (\"BNK US\") has obtained a new US$75,000,000 revolving line of credit (\"new facility\") from BOK Financial. (\"BOKF\"). The initial commitment amount of the new reserve-based facility is US$25,000,000.\n\nInitial proceeds from the new facility were used to fund the re-payment of BNK US' existing credit facility.  Going forward, proceeds of the new facility are intended to be used for the further development of the Company's Tishomingo field in Oklahoma.  The interest rate on the new facility is calculated based on usage under two separate tranches.  The first tranche will bear interest at a per annum rate equal to an elected LIBOR rate plus a margin ranging from 3% to 4%, depending on the borrowing base utilization amount, which will be US$20,000,000 of the initial commitment.  The second tranche will bear interest at a per annum rate equal to the elected LIBOR rate plus 6%, which is US$5,000,000 of the initial commitment.  The facility provides for interest only payments until the June 2022 maturity date, with bi-annual scheduled reserve redeterminations.  \n\nCommenting on the new facility, Wolf Regener, President and CEO, said \"We are very pleased to have BOKF join and support us in our Tishomingo project.  The improved credit facility supports our growth initiatives and, compared to our previous facility, provides us with a lower interest rate that saves us over US$650,000 a year assuming the initial commitment amount is fully drawn, and extends the maturity date by four years to June 2022.  We look forward to a long and mutually beneficial relationship with BOKF.  We are also looking forward to fracking our two previously drilled wells, to quickly increase our production and cash...