antonaki1 wrote: 2020-12-09 18:15 ET - News Release
Mr. Scott Ratushny reports
CARDINAL ENERGY LTD. ANNOUNCES EXTENSION OF CREDIT FACILITY
Cardinal Energy Ltd. has received approval from its syndicate of lenders to extend the company's credit facilities. The facilities were renewed at $225-million and extend the revolving period and maturity date to May 31, 2021, and May 31, 2022, respectively. In this renewal Cardinal has received reserve-based lending commitments from two new lenders, Export and Development Canada and Canadian Western Bank, while one previous lender, National Bank Financial, has been asked to exit.
The $40.5-million lending commitment from EDC, based on its Business Credit Availability Program (the BCAP), has a tenure of up to two years and is renewable at maturity at EDC's discretion. Cardinal's syndicate of lenders has reviewed the facilities and approved amendments to incorporate the EDC financing commitment and documentation supporting the lending commitment from EDC has been executed. Both new lenders join Cardinal's syndicate of lenders as highly aligned capital partners. The new commitments allowed for the exit of one of Cardinal's previous syndicate members and the reduction of commitments from two existing lenders while maintaining the $225-million credit facility borrowing base under the facilities. The completion of the bank financing was a condition of the recently announced private offering of second lien notes and common shares. The combination of both of these transactions will provide Cardinal with strong capital providers and ample liquidity.
About Cardinal Energy Ltd.
One of Cardinal's goals is to continually improve its environmental, safety and governance mandate, and operate its assets in a responsible and environmentally sensitive manner. As part of this mandate, Cardinal injects and conserves more carbon than it directly emits, making it one of the few Canadian energy companies to have a negative carbon footprint.
Cardinal is a Canadian-oil-focused company with operations focused on low-decline light-, medium- and heavy-quality oil in Western Canada.
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