Petrus Resources announces 2nd lien term loan expansion, expansion to credit center and 3rd quarter 2020 money spending plan
July 16, 2020 World Newswire
CALGARY, Alberta вЂ“ Petrus Resources Ltd. (вЂњPetrusвЂќ or perhaps the вЂњCompanyвЂќ) (TSX: PRQ) is very happy to announce the concurrent expansion of the 2nd lien term loan (вЂњTerm LoanвЂќ) and Revolving Credit center (вЂњRCFвЂќ) in addition to conclusion of this RCF loan providersвЂ™ 2020 annual review. The CompanyвЂ™s board of directors has additionally authorized its quarter that is third 2020 spending plan.
2ND LIEN TERM LOAN EXTENSION Petrus has entered into an amending contract with Macquarie Bank restricted to expand the $35 million Term Loan maturity date to July 31, 2021. The attention rate regarding the Term Loan balance would be updated to be the Dealer that is canadian Offered (вЂњCDORвЂќ) plus 975 foundation points. Every one of the interest may be produced by means of paymentinkind (вЂњPIKвЂќ) and included with the balance that is outstanding of Term Loan in place of payment of money interest. The definition of Loan extension also https://speedyloan.net/personal-loans-vt contains the elimination of the Total financial obligation to EBITDA ratio plus the Proved and PDP resource Coverage Ratios from the monetary covenants. The performing Capital ratio covenant happens to be updated up to a minimal test of 0.6:1.0 (or such lower quantity as decided to by the loan providers beneath the Term Loan which shall perhaps maybe not be not as much as 0.5:1.0).
CREDIT CENTER EXTENSION Concurrent using the Term Loan extension, the organization has also finished its RCF that is annual review. The RCF ended up being updated to $88.5 million. By the end associated with the quarter that is second of, the organization was drawn about $86.7 million from the RCF, inclusive of the $0.6 million page of credit outstanding. The RCF will undoubtedly be paid off by $2.75 million at the conclusion of each and every quarter that is fiscal. The CompanyвЂ™s RCF readiness date happens to be updated to May 31, 2021 that has been set before the Term Loan maturity of July 31, 2021. Just like the Term Loan extension, the RCF includes the elimination of the Total Debt to Adjusted EBITDA ratio along with the Proved and PDP resource Coverage Ratios from the economic covenants, and also the performing Capital ratio covenant happens to be updated to the very least test of 0.6:1.0 (or such lower quantity as consented to because of the loan providers underneath the RCF which shall perhaps maybe not be significantly less than 0.5:1.0). The bankers Acceptance Stamping fees will range between 350 bps and 600 bps which will result in an increase in the RCF interest rate of between 150 bps and 250 bps as part of the RCF extension. The rise in rate of interest charged is likely to be partially offset by the continued and reduction that is systematic the CompanyвЂ™s web financial obligation each quarter.
Petrus administration believes this has adequate liquidity to perform the CompanyвЂ™s business strategy within the approaching year. The business continues its efforts to divest specific noncore assets and assess other sourced elements of money to boost its balance sheet.
2020 THIRD QUARTER CAPITAL BUDGET with all the present volatility within the cost of Canadian light oil and gas, the organization thinks it is wise to keep a disciplined money spending plan this is certainly flexible from a functional and economic viewpoint.
Petrus is invested in keeping its economic freedom therefore the Company intends to ascertain quarter that is subsequent investing since the 12 months advances. For the last half of 2020 we think we now have significant optionality into the quantity, the commodity composition therefore the location of drilling possibilities. Petrus is targeted on creating its 2020 money want to spend capital systematically each quarter within funds movement, permitting extra funds each quarter to lessen financial obligation.
ABOUT PETRUS Petrus is really general public oil that is canadian fuel business centered on property exploitation, strategic purchases and riskmanaged research in Alberta.