News
Edge arranges $18.5-million Nat'l Bank credit lines
Edge Resources Inc (C:EDE)
Shares Issued 71,846,408
Last Close 2/24/2012
.18
Monday February 27 2012 - News Release
Mr. Brad Nichol reports
EDGE ANNOUNCES INCREASED BANK FACILITIES AND REFINANCING
Edge Resources Inc. has obtained credit facilities with the National Bank of Canada as follows: a demand revolving credit facility with a limit of $12-million, a demand development/acquisition facility with a limit of $6.5-million and a risk management facility. Part of the available amount under the revolving facility was used to repay all of the Company's credit facilities at the Canadian Western Bank. The revolving credit facility and development/acquisition facility bear interest at the bank's prime rate plus 0.75 percent per annum and 1.25 per cent per annum respectively. The Credit Facilities are secured against the assets of the Company.
In addition, the Company has entered into the following hedging contracts:
-- 90 barrels of oil per day from March 2012 to February 2013 with a swap price of $108.01 CDN WTI per barrel -- and 60 barrels of oil per day from March 2013 to February 2014 with a swap price of $104.46 CDN WTI per barrel
Brad Nichol, President & CEO of Edge commented, "Conventional bank debt has funded a significant amount of our early growth at an extremely low cost and has been an important tool to maximize the value we have been able to create for our shareholders. Utilizing existing relationships, we have ensured the team at National Bank is acutely aware of our needs and is happy to become a supportive part of our future." Nichol added, "Given that low-cost conventional bank debt continues to be important to Edge's development, we felt it was important to hedge some of our oil production to provide a level of additional security that a floor price provides."
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