- Obsidian Energy (OBE) has announced the proposed private placement of senior unsecured notes and proposed new syndicated credit facilities
- The company plans to embark on a proposed private placement of five-year senior unsecured notes in the amount of up to $125.0 million
- The private placement is part of the company’s debt refinancing
- In relation with the private placement of the notes, Obsidian Energy also plans to enter into new syndicated credit facilities with borrowing capacity of up to $225.0 million
- Obsidian Energy Ltd. is an intermediate-sized oil and gas producer
- Obsidian Energy Ltd. opened the day’s trading at $9.71 per share
Obsidian Energy (OBE) has announced a proposed private placement of senior unsecured notes and new syndicated credit facilities.
The company plans to embark on a proposed private placement of five-year senior unsecured notes in the amount of up to $125.0 million, subject to market and other conditions.
The private placement is part of the company’s debt refinancing.
In relation to the private placement, Obsidian Energy also plans to enter into new syndicated credit facilities with a borrowing capacity of up to $225.0 million.
Subject to completion of the offering and entering into the new credit facilities, Obsidian Energy intends to use the net proceeds of the offering, together with initial draws on the new credit facilities, to repay all of its existing senior secured notes due November 30, 2022, in accordance with the terms.
It will also use the proceeds to repay the outstanding balances under its existing credit facilities due November 30, 2022, and repay the PROP limited recourse loan due on December 31, 2022, which the company incurred in connection with its 2021 acquisition of the remaining 45 percent interest in the Peace River Oil Partnership.
Once it has closed the offering, the company intends to enter into the new credit facilities with a syndicate of lenders, including the Royal Bank of Canada, Bank of Montreal and Canadian Western Bank, which will provide up to $225.0 million available to be drawn.
The $225.0 million of availability will consist of $175.0 million revolving syndicated credit facilities and up to $50.0 million non-revolving term loan.
Obsidian Energy Ltd. is an intermediate-sized oil and gas producer with strategic assets in Alberta.
Obsidian Energy Ltd. opened the day’s trading at $9.71 per share.