CALGARY, Alberta, Dec. 13, 2021 (GLOBE NEWSWIRE) — Kiwetinohk Energy Corp. (“Kiwetinohk” or the Corporation”) is pleased to announce a 40 percent increase to its Senior Secured Extendible Revolving Facility (or “Credit Facility”). Kiwetinohk’s existing lenders, Bank of Montreal as agent and co-leads ATB Financial and National Bank of Canada, have completed their semi-annual borrowing base redetermination and have agreed to amend the Credit Facility and increase the borrowing limit from $225 million to $315 million. To support this increase Kiwetinohk has expanded its lending syndicate to six banks and is delighted to have the support of Royal Bank of Canada, Bank of Nova Scotia and Business Development Bank of Canada as lenders.
The next semi-annual borrowing base review is scheduled on or before May 31, 2022. The increased borrowing limit provides:
- ample liquidity for current operations;
- additional capacity for any increase in letters of credit that may be required through the winter to support natural gas purchases to fulfill unutilized pipeline transportation commitments; and
- funding of the Corporation’s 2022 capital program.
As disclosed in the September 30, 2021 interim financial statements the Corporation had borrowings of $32.6 million along with letters of credit of $52 million. The Corporation would now have $230 million of available short-term liquidity based on the Credit Facility.
The Credit Facility is composed of an operating facility of $65.0 million and a syndicated facility of $250.0 million. The Credit Facility is a 364-day committed facility available on a revolving basis until May 31, 2022. If the revolving period is not extended, the undrawn portion of the Credit Facility will be cancelled and the amount outstanding would be required to be repaid at the end of the non-revolving term, being May 31, 2023. The borrowing base is determined based on the lenders’ evaluation of the Corporation’s petroleum and natural gas reserves at the time and commodity prices. The Credit Facility, which has been filed on SEDAR, has no minimum hedging requirements or financial covenants.
Kiwetinohk is engaged in the business of developing an integrated energy transition company focused on production of low carbon energy through the alignment of hydrocarbon production with natural gas-fired (with carbon capture) and renewable power generation solutions.
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