Petrus Resources announces 2nd lien term loan expansion, expansion to credit center and 3rd quarter 2020 money budget
July 16, 2020 World Newswire
CALGARY, Alberta вЂ“ Petrus Resources Ltd. (вЂњPetrusвЂќ or perhaps the вЂњCompanyвЂќ) (TSX: PRQ) is happy to announce the concurrent expansion of the 2nd lien term loan (вЂњTerm LoanвЂќ) and Revolving Credit center (вЂњRCFвЂќ) and also the conclusion associated with the RCF loan providersвЂ™ 2020 annual review. The CompanyвЂ™s board of directors in addition has authorized its 3rd quarter 2020 money 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 31, 2021 july. The attention rate regarding the Term Loan balance are going to be updated in order to become the Canadian Dealer Offered Rate (вЂњCDORвЂќ) plus 975 foundation points. Most of the interest are going to be produced by means of paymentinkind (вЂњPIKвЂќ) and included with the outstanding stability for the Term Loan in place of payment per month of money interest. The definition of Loan extension also incorporates the elimination of the debt that is total EBITDA ratio plus the Proved and PDP resource Coverage Ratios from the economic covenants. The performing Capital ratio covenant was updated up to a test this is certainly the least (or such lower quantity as consented to by the loan providers beneath the Term Loan which shall maybe perhaps not be not as much as 0.5:1.0).
CREDIT FACILITY EXTENSION Concurrent because of the Term Loan extension, the business has also finished its RCF that is annual review. The RCF had been updated to $88.5 million. By the end regarding the second quarter of 2020, the business was drawn about $86.7 million resistant to the RCF, inclusive of a $0.6 million page of credit outstanding. The RCF should be paid off by $2.75 million by the end of every financial quarter. The CompanyвЂ™s RCF readiness date happens to be updated to might 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 plus the Proved and PDP Asset Coverage Ratios from the monetary covenants, together with performing Capital ratio covenant was updated to the very least test of 0.6:1.0 (or such lower quantity as decided to by the loan providers underneath the RCF which shall maybe perhaps 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 will likely be partially offset because of the continued and reduction that is systematic the CompanyвЂ™s web debt each quarter.
Petrus management thinks this has sufficient liquidity to perform the CompanyвЂ™s company plan on the approaching year. The business continues its efforts to divest specific assets that are noncore www.speedyloan.net/personal-loans-tn/ assess other resources 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 propane, the business thinks it is wise to keep a disciplined money spending plan that is versatile from an operational and financial viewpoint.
Petrus is invested in keeping its monetary freedom plus the business intends to ascertain quarter that is subsequent investing once the 12 months advances. For the last half of 2020 we think we now have significant optionality when you look at the quantity, the commodity structure while the location of drilling possibilities. Petrus is concentrated on creating its 2020 money want to invest capital methodically each quarter within funds movement, permitting excess funds each quarter to cut back financial obligation.
REGARDING PETRUS Petrus is just general general public Canadian oil and fuel company dedicated to home exploitation, strategic purchases and riskmanaged research in Alberta.