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Stampede Drilling Inc. Announces $2 Million Secured Credit Facility, Amendment to its Existing Credit Facility with HSBC
Stampede Drilling Inc. Announces $2 Million Secured Credit Facility, Amendment to its Exi...
About this update from Stampede Drilling Inc.
[{"type":"text","content":"\n \n \n \n Stampede Drilling Inc. Announces $2 Million Secured Credit Facility, Amendment to its Existing Credit Facility with HSBC\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, Nov. 30, 2020\n \n \n \n \n \n CALGARY, AB\n \n ,\n \n Nov. 30, 2020\n \n /CNW/ - Stampede Drilling Inc. (\"Stampede\" or the \"Company\") is pleased to announce the closing of a loan facility (the \"BDC Facility\") in an amount of up to\n \n $2 million\n \n pursuant to a letter of offer dated\n \n October 28, 2020\n \n with the Business Development of\n \n Canada\n \n (\"BDC\"). The BDC Facility has an interest rate equal to BDC's floating base rate, currently at 4.55%, a maturity date of\n \n September 1, 2023\n \n , and comes with customary representations, warranties and covenants. The Company also granted BDC a security interest (the \"BDC Security Interest\") in all present and after-acquired property, except consumer goods, accounts receivable and inventory. BDC, HSBC Bank Canada (\"HSBC\") and the Company have also entered into a priority agreement, whereby the BDC Security Interest is postponed and subordinated to the security interests held by HSBC in the personal property of the Company in connection with the facility letter dated\n \n December 20, 2018\n \n from HSBC to the Company, as acknowledged and agreed to by the Company on\n \n December 20, 2018\n \n (the \"HSBC Facility\").\n \n \n The Company has also announced an amendment to its existing credit agreement, including adjustments to, and suspension of, certain debt covenant thresholds with HSBC (the \"HSBC Amendment\") commencing on\n \n December 31, 2020\n \n until\n \n December 31, 2021\n \n , as well as other amendments to reflect the establishment of the BDC Facility. While the Company has not breached any covenants, management felt that in light of the ongoing negative impact on 2020 drilling activity from the COIVID-19 pandemic and depressed oil prices, it was prudent to make these amendments to provide the Company with additional financial assurance and flexibility as ...