- Obsidian Energy Ltd. (OBE) has closed its acquisition of the remaining 45 percent interest in the Peace River Oil Partnership asset through a wholly owned subsidiary
- Total consideration paid was $43.5 million prior to closing adjustments with an effective date of July 1, 2021, which came to $36 million after closing adjustments
- The offering was priced at $4.40 per receipt for aggregate gross proceeds of approximately $25.9 million, which included the full exercise of the over-allotment option granted to a syndicate of agents
- The net proceeds were released from escrow and used to facilitate the partial funding of the cash consideration payable under the acquisition
- In 2022, Obsidian plans to refinance its debt facilities with the objective of incorporating senior and subordinated debt in the structure to provide the company with a stable capital source that provides operational liquidity and a longer-term maturity profile
- Obsidian Energy Ltd. (OBE) is up 0.86 per cent and is trading at $4.71 as of 1:44 p.m. EST
Obsidian Energy (OBE) has closed its acquisition of the remaining 45 percent interest in the Peace River Oil Partnership asset through a subsidiary.
Total consideration paid was $43.5 million prior to closing adjustments with an effective date of July 1, 2021, which came to $36 million after closing adjustments.
The cash consideration for the acquisition was funded by a $16.3 million limited-recourse loan secured by the additional 45 percent interest in Peace River and proceeds from the marketed public offering of subscription receipts.
The offering was priced at $4.40 per receipt for aggregate gross proceeds of approximately $25.9 million, which included the full exercise of the over-allotment option granted to a syndicate of agents.
The subscription receipts are being converted into Obsidian Energy common shares on November 24, 2021.
The net proceeds were released from escrow and used to facilitate the partial funding of the cash consideration payable under the acquisition.
Holders of subscription receipts are not required to take any action to receive the underlying Common Shares.
Trading in the subscription receipts on the TSX is expected to be halted today and delisted in due course.
Obsidian has reduced the aggregate amount available under its senior credit facility by $25 million to a total of $415 million.
Obsidian repaid approximately US$3 million of its senior notes, which leaves approximately US$43.3 million outstanding with a maturity date of November 30, 2022.
In 2022, Obsidian plans to refinance its debt facilities with the objective of incorporating senior and subordinated debt in the structure to provide the company with a stable capital source that provides operational liquidity and a longer-term maturity profile.
Obsidian Energy Ltd. (OBE) is up 0.86 per cent and is trading at $4.71 as of 1:44 p.m. EST.