The credit facility was also amended to allow cash distributions from BNK U.S. to Kolibri, subject to certain conditions which include: (1) 70 per cent or less of the borrowing base of the loan remains outstanding after the distribution; and (2) the maximum leverage ratio on a pro forma basis immediately before and after the distribution is less than or equal to 1.25 to 1.00. The amendments also reduced the minimum term of the hedging contracts the company is required to put in place from 24 months to 18 months.
Wolf Regener, president and chief executive officer, commented: "We are very pleased to have BOKF's continued support as we continue to accelerate the development of our Tishomingo project. These changes would allow the company to potentially return capital to shareholders in the future and provide us with greater flexibility for our hedging strategy."