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Obsidian Energy Announces Closing of our $127.6 Million Senior Unsecured Notes Offering and New Debt Facilities as well as Repayment of our Existing Debt Facilities
Calgary, Alberta--(Newsfile Corp. - July 27, 2022) - OBSIDIAN ENERGY LTD. (TSX: OBE) (NYSE Ame...
About this update from Obsidian Energy Ltd
[{"type":"text","content":"Obsidian Energy Announces Closing of our $127.6 Million Senior Unsecured Notes Offering and New Debt Facilities as well as Repayment of our Existing Debt FacilitiesCalgary, Alberta--(Newsfile Corp. - July 27, 2022) - OBSIDIAN ENERGY LTD. (TSX: OBE) (NYSE American: OBE) (\"Obsidian Energy\", the \"Company\", \"we\", \"us\" or \"our\") announces that it has successfully closed the previously announced private placement offering (the \"Offering\") of $127.6 million aggregate principal amount of 11.95 percent five-year senior unsecured notes due July 27, 2027 (the \"Notes\"). In connection with the private placement of the Notes, Obsidian Energy also entered into a new $175.0 million revolving syndicated credit facility and a new $30.0 million non-revolving term loan (collectively, the \"New Credit Facilities\") with the Royal Bank of Canada, Bank of Montreal and Canadian Western Bank. The Company has used the net proceeds of the Offering, together with initial draws on the New Credit Facilities, to repay its outstanding debt (including interest and fees), comprised of: US$35.8 million for all our senior secured notes that were due November 30, 2022; $227.2 million for all outstanding amounts under our previous credit facilities that were due November 30, 2022; and $6.6 million for all outstanding amounts under the Peace River Operating Partnership (\"PROP\") limited recourse loan that were due December 31, 2022. In addition, the Company also closed out hedges that were initially put in place for the PROP 45 limited recourse financing (US$3.5 million) and fees associated with the refinancing ($6.1 million). Following these repayments, we have $287.6 million of long-term indebtedness, including $130 million drawn on our $175 million revolving syndicated credit facility and $30 million drawn on our non-revolving term loan. The syndicated credit facility has a revolving period ending on July 27, 2023, with a term out period ending on July 27, 2024, subject to customary annual extension terms. The term loan matures December 31, 2022 and is expected to be repaid in the third quarter of 2022 from free cash flow from our operations. \"We're pleased to complete our refinancing project,\" said Stephen Loukas, Obsidian Energy's Interim President and CEO. \"The size and tenor of this issuance, combined with the New Credit Facilities creates a ...