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BNK Petroleum Inc. announces the closing of US $30 million credit facilities
CALGARY, Oct. 14 /CNW/ - BNK Petroleum Inc. (the Company)/(TSX: BKX) is pleased to announce that ...
About this update from Kolibri Global Energy Inc
[{"type":"text","content":"\n\n\n\nCALGARY, Oct. 14 /CNW/ - BNK Petroleum Inc. (the Company)/(TSX: BKX) is\npleased to announce that it has closed its previously announced US $30 million\ncredit facilities (Capital One Facilities) with the Energy Banking division of\nCapital One, N.A. through its wholly owned subsidiary BNK Petroleum (US) Inc.\n\n\nThe Facility A is a senior revolving credit facility secured by a\nUS $23 million certificate of deposit which was funded by a loan from Bankers\nPetroleum Ltd. (Bankers, TSX: BNK) pursuant to a subordinated loan agreement\n(the Subordinated Loan) between Bankers and the Company. The Facility B is a\nUS $50 million senior secured revolving credit facility subject to a borrowing\nbase and secured by the Company's oil and gas properties in Carter and\nJohnston counties, Oklahoma. The initial borrowing base was determined as\nUS $7 million. The borrowing base will be determined at least semi-annually on\nApril 1 and October 1. Any increase in the borrowing base will result in the\nrelease of all or a part of the US $23 million cash deposit on a dollar for\ndollar basis and the reduction of the Facility A in an amount equal to the\nborrowing base increase. The amount available under Facility B will then be\nincreased to the new borrowing base.\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 intends to use the proceeds from the Capital One Facilities\nin the continued development of its Tishomingo Field in Ardmore County,\nOklahoma and general working capital purposes.\n\n\nBNK also is pleased to announce that the NGPL meter upgrade has been\ncompleted and production from the shut in wells has been restored.\n\n\nAbout BNK Petroleum Inc.\n\n\nBNK Petroleum Inc. is a California based oil and gas ex...