Obsidian Energy Announces Completion of Agreements with our Banking Syndicate, Noteholders and Landlord
March 29, 20208:09 PM CNW
CALGARY – OBSIDIAN ENERGY LTD. (TSX – OBE, NYSE – OBE.BC) (“Obsidian Energy“, the “Company“, “we“, “us” or “our“) is pleased to announce completion of agreements with our lenders and building landlord. All figures are in Canadian dollars unless otherwise stated. Further to our recent announcements, the Company has executed final agreements resulting in the renewal of our syndicated credit facility, amendments to our senior notes and renewed terms on our Calgary office lease. All terms are consistent as previously announced except for further financial covenant relief, which will provide the Company additional flexibility in the current oil price environment. A summary of the terms is provided below: Syndicated Credit Facility: the borrowing base and amount available under the credit facility are set at $550 million and $450 million, respectively;the revolving period under the agreement has been extended to May 31, 2021 with the end date of the term period extended to November 30, 2021;a revolving period reconfirmation date will occur on June 22, 2020, whereby the lenders may accelerate the end date of the revolving period to June 30, 2020 with the end date of the term period also concurrently accelerated to April 1, 2021;the next scheduled borrowing base redetermination will occur on November 30, 2020; andelimination of the debt to Adjusted EBITDA covenants. Senior Notes: all the outstanding senior notes will mature on November 30, 2021;if the end date of the revolving period on the syndicated credit facility is accelerated to April 1, 2021, as described above, then the senior notes maturities will also be accelerated to that date; andelimination of the debt to Adjusted EBITDA covenants. Calgary Office Lease: lease payments will total $0.833 million per month, net of sub-leases, from February 2020 to January 2025 ($10 million on an annualized basis), which is the end of the lease; andthe building landlord has agreed to indemnify the Company on all existing subleases. NON-GAAP MEASURES The financial measure Adjusted EBITDA included in this press release does not have a standardized meaning prescribed by IFRS and therefore is considered a non-GAAP measure; accordingly, it may not be comparable to similar measures provided by other issuers. Adjusted EBITDA is cash flow from operations excluding the impact of changes in non-cash working capital, decommissioning expenditures, financing expenses, realized gains and losses on foreign exchange hedges on prepayments, realized foreign exchange gains and losses on debt prepayment, restructuring expenses and other expenses. Adjusted EBITDA as defined by Obsidian Energy’s debt agreements excludes the EBITDA contribution from assets sold in the prior 12 months and is used within Obsidian Energy’s covenant calculations related to its syndicated bank facility and senior notes. Additionally, under the syndicated credit facility, realized foreign exchange gains or losses related to debt maturities are excluded from the calculation.