Topaz extends and increases facility to $300-million


2021-02-19 17:56 ET - News Release


Mr. Marty Staples reports


Topaz Energy Corp. has entered into an amended and restated credit agreement with a syndicate of Canadian banks providing for a $300-million combined operating and syndicated credit facility due Feb. 19, 2024. The amended credit facility replaces the company's prior credit facility, which was undrawn, due June 10, 2022, and provided for aggregate borrowing capacity of $125-million. The amended credit facility provides for a permitted increase to $400-million, subject to agent consent, and is subject to covenants which are consistent with the covenants under the prior credit facility.

Strategic rationale

The company's business model is supported by its conservative capital structure which currently has no debt, a net positive cash position and significant free cash flow which, together, provide financial flexibility. The amended credit facility includes improved revisions to the variable grid used to determine the interest rate payable on borrowings by the company, which results in enhanced financial flexibility at attractive pricing to position the company to strategically execute accretive growth transactions.

2020 results and updated 2021 guidance

Topaz plans to release its annual and fourth quarter 2020 results and updated 2021 guidance estimates on Wednesday, March 17, 2021, after markets close. Topaz will host a conference call on Thursday, March 18, 2021, starting at 9 a.m. MT (11 a.m. ET). To participate in the conference call, please dial 1-888-664-6392 (North American toll-free) a few minutes prior to the call. Conference ID is 26428688.