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BNK Petroleum Inc. announces the approval of US $30 million credit facility
CALGARY, July 16 /CNW/ - BNK Petroleum Inc. (TSX: BKX) is pleased to announce that it has entered...
About this update from Kolibri Global Energy Inc
[{"type":"text","content":"\n\n\n\nCALGARY, July 16 /CNW/ - BNK Petroleum Inc. (TSX: BKX) is pleased to\nannounce that it has entered into a binding commitment with the Energy Banking\ndivision of Capital One, N.A. through its wholly owned subsidiary Bankers\nPetroleum (US) Inc., for two loan facilities (Capital One Facilities).\n\n\n"We are extremely pleased with our financial partnership with Capital One\nin this early stage of our development. We are looking forward to a long\nlasting and mutually beneficial relationship." said Wolf Regener, President\nand Chief Executive Officer of the Company.\n\n\nThe Facility A is a senior revolving credit facility secured by a\nUS $23 million certificate of deposit which will be funded by a loan from\nBankers Petroleum Ltd. (Bankers, TSX: BNK) pursuant to a subordinated loan\nagreement (the Subordinated Loan) between Bankers and the Company. The\nFacility B is a US $50 million senior secured revolving credit facility\nsubject to a borrowing base and secured by all proved oil and gas properties\nand undeveloped acreage of the Company. The initial borrowing base was\ndetermined as US $7 million. The borrowing base will be determined at least\nsemi-annually on April 1 and October 1. Any increase in the borrowing base\nwill result in the release of all or a part of the US $23 million cash deposit\non a dollar for dollar basis.\n\n\nThe Facility A bears interest at 1% over the interest rate paid on the\nunderlying deposit. The Facility B bears interest at US prime rate plus a\nmargin which ranges from 0 basis points (bps) to 25 bps based on the facility\nusage. In addition the Company pays commitment fees ranging from 25 bps to\n50 bps on the unutilized portion of the Facility B. The Company also pays a\n100 bps facility fee on the initial borrowing base and 50 bps on any\nsubsequent increase in the borrowing base.\n\n\nThe Capital One Facilities have no scheduled repayment terms and mature\nin three years from closing unless terminated earlier by the Company without\npenalty.\n\n\nThe Company expects to use the proceeds from the Capital One Facilities\nin the development of its Tishomingo Gas Field in Ardmore County, Oklahoma and\ngeneral working capital purposes.\n\n\nThe Subordinated Loan payable to Bankers bears interest at LIBOR plus\n3.5% and is secured by a floating charge debenture and a general secur...