GREY:WFREF - Post by User
Post by
BlueCollar51on Dec 02, 2015 7:02am
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Post# 24345693
Credit Facility Update
Credit Facility Update
The Credit Facility has been revised.
The “Non-revolving” portion has been increased from $245m due 29 May 2016 to $350m due with 3 mandatory payments.
- $100m due 31 Jan 2016
- $125m due 29 May 2016
- $125m due 30 Nov 2016
The lenders are tightening the screws!
The fate of Long Run (Long Shot?) is firmly in the hands of Maple Marathon. If they don’t come through with the new $100m offer its game over!!
CALGARY, ALBERTA--(Marketwired - Nov. 30, 2015) - Long Run Exploration Ltd. ("Long Run" or the "Company") (TSX:LRE) announces amendments to our bank credit facilities.
Long Run has completed the semi-annual review of our credit facilities with our bank syndicate. The Company's total credit facilities have been amended to $650 million, consisting of a $270 million revolving syndicated facility, a $30 million operating facility and a $350 million non-revolving syndicated facility. The reduction of total credit facilities from $695 million to $650 million reflects the Company's voluntary repayment of $20 million in October 2015 and liquidity generated from our 2015 funds flow from operations exceeding our capital expenditures.
The revolving syndicated facility and the operating facility, which comprise the Company's borrowing base facilities, are reviewed semi-annually and terminate on May 31, 2017. The maturity dates of our $350 million non-revolving syndicated facility have been staggered to align with the Company's proposed private placement with Maple Marathon Investments Limited ("Maple Marathon") and the strategic asset rationalization process. The proceeds from the proposed private placement will be used to repay the $100 million due January 31, 2016. Long Run expects to use the proceeds from the strategic asset rationalization process to repay the $125 million due May 29, 2016. The remaining $125 million is due November 30, 2016 with the method of repayment to be determined based on 2016 market conditions. Methods could include proceeds from the exercise of warrants issued to Maple Marathon, asset dispositions and debt restructuring.
The existing terms of the credit agreement have been amended to include events of default which relate to the time of closing of the proposed private placement with Maple Marathon. Additionally, the $270 million revolving syndicated facility will be held at $255 million until closing of the private placement.
Long Run remains focused on debt reduction and continues to evaluate strategic and financial means to improve our capital structure. The Company is actively working toward the completion of the proposed private placement with Maple Marathon while concurrently executing on a formal asset rationalization process. Together these initiatives are aimed at providing Long Run with the flexibility to pursue all opportunities to strengthen our financial position.
Further details can be found in the Company's first amending agreement to the amended and restated credit agreement dated May 29, 2015 that will be filed on Long Run's SEDAR profile at www.sedar.com.
https://web.tmxmoney.com/article.php?newsid=80937506&qm_symbol=LRE
My "SMALL" LRE.DB "BET" doesn’t look to be very safe these days!!
As Always; Do Your Own Due Diligence; It’s Your Money !!