Finance & Investing | Debt | Capital Markets

Pine Cliff Energy Enters New Credit Facility

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• Entered into $70.0 million syndicated credit facility with a syndicate of three Canadian Chartered banks, of which $47.6 million is drawn (current net debt is approximately $40.0 million).
• Proceeds may be used for general corporate purposes, including working capital and acquisitions.

Pine Cliff Energy Ltd. has announced that the Company has entered into a $70.0 million syndicated credit facility with a syndicate of three Canadian Chartered banks, of which $47.6 million is drawn (current net debt is approximately $40.0 million).

The Syndicated Facility consists of a $60.0 million revolving term credit facility and a $10.0 million revolving operating facility that replaces the Company's $70.0 million revolving demand credit facility. The Syndicated Facility is a one year revolving facility with the initial revolving period ending on July 31, 2016 and is reviewed semi-annually. If the Syndicated Facility is not renewed it will convert to a 364-day term loan.

Amounts borrowed under the Syndicated Facility will bear interest at the Company's option of either the Canadian prime rate plus 1.0% to 2.5% or the bankers' acceptance rate plus 2.0% to 3.5%, depending, in each case, on the ratio of consolidated debt to EBITDA. The proceeds of the Syndicated Facility may be used for general corporate purposes, including working capital and acquisitions.

The syndication of Pine Cliff's credit facility, together with the Company's free funds flow from operations, will provide Pine Cliff with the flexibility to support its strategic plan.