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Westgate Energy Inc. Closes US$25 million Senior Secured Loan
Westgate Energy Inc. Closes US$25 million Senior Secured Loan Canada NewsWire ...
About this update from Westgate Energy Inc
[{"type":"text","content":"\n\n\n\n Westgate Energy Inc. Closes US$25 million Senior Secured Loan\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\n\n\n\n CALGARY, AB\n \n\n ,\n \n\n April 3, 2025\n \n\n /CNW/ -\n \n Westgate Energy Inc. (the \"Company\" or \"Westgate\")\n \n (TSXV: WGT) is pleased to announce that, further to its press release dated\n \n March 10, 2025\n \n , it has closed a first lien senior secured loan for up to\n \n US$25 million\n \n (the \"\n \n Senior Secured Loan\n \n \") from Cibolo Energy Partners, LLC and certain of its affiliates (collectively, \"\n \n Cibolo\n \n \"), a Houston‐based firm focused on energy investment opportunities. The Senior Secured Loan is a strategic and transformational transaction for Westgate that will allow the Company to fund drilling on its existing lands and on strategic Mannville Stack focused assets to potentially be acquired in East-Central Alberta near Frog Lake (the \"\n \n Strategic Acquisition\n \n \").\n \n\n Westgate entered into a first lien senior secured credit agreement with Cibolo providing for a multi‐draw, non‐revolving term loan facility of a maximum aggregate principal amount of up to\n \n US$25.0 million\n \n . Westgate has made an initial draw of\n \n US$10.0 million\n \n . An additional\n \n US$10.0 million\n \n has been committed and remains available for draw. Additional commitments are subject to further approval by Cibolo. The Senior Secured Loan carries an interest rate due quarterly of SOFR plus 7.75%, with an SOFR floor of 4.25%, and will mature on\n \n April 3, 2029\n \n . Based on the current SOFR rate, the initial interest rate will be approximately 12.04%. The Company's wholly owned subsidiary, Westgate Energy Operations Ltd., has guaranteed the Senior Secured Loan.\n \n\n In connection with the Senior Secured Loan, the Company issued Cibolo non-transferable common share purchase warrants (the \"\n \n Loan Warrant\n \n s\") entitling Cibolo to acquire up to 24,343,659 common shares in the capital of the Company (the \"\n \n Common Shares\n \n \")...