RE:RE:strong Q2 in-spite of lower production....here
https://www.pieridaeenergy.com/news-release/pieridae-announces-successful-refinancing-lower-cost-debt-addition-commodity-hedges
STRUCTURE OF THE FINANCING
USD $120 million, 45-month Senior Facility:
- Borrower: PAPL
- Noteholders: Prudential and Voya
- USD $25 million revolving loan (USD $12 million drawn at close)
- USD $85 million amortizing term loan (fully drawn at close)
- USD $10 million amortizing delayed draw term loan (undrawn at close) available between Q3 2023 and Q4 2024 to partially fund the upcoming Waterton Plant Turnaround
- Maturity date: March 13, 2027
- Variable Interest: SOFR + 6.75%, per annum, payable monthly or quarterly
- Amortization: 2% quarterly (USD $1.7-$1.9 million per quarter), plus excess cash sweep (after capex) to accelerate debt repayment
USD $30 million, 51-month Subordinated Notes:
- Borrower: PAPL
- Noteholder: Prudential
- Maturity date: September 13, 2027
- Fully drawn at close
- Fixed Interest: 13%, per annum, payable quarterly
- Amortization: none
- Includes 18,596,322 common share purchase warrants at exercise price of $0.49 with a term of 7 years
Key Senior Facility Financial Covenants (PAPL):
- Ratio of Senior Debt : EBITDAX < 2.0x
- Ratio of Total Debt : EBITDAX < 2.5x
- Ratio of Adjusted PDP Value : Total Debt > 2.0x
- Ratio of EBITDAX : Interest Expense > 2.0x
Senior Facility Rolling Hedge Requirement:
% forecast Proved Developed Producing (“PDP”) natural gas and condensate production, net of annualized royalties.
- 75% months 1-24
- 65% months 25-36
- 45% months 37-48
BRIDGE TERM LOAN
CAD $20 million, 18-month Bridge Term Loan
- Borrower: PEL (no recourse against PAPL)
- Lender: TEC affiliated entities
- Maturity date: December 13, 2024
- Fixed Interest: 18% per annum, accrued and payable at maturity
- Amortization: none
- Optional Prepayment: 30-day notice without penalty
- Optional Conversion Right: convertible to common shares of PEL, subject to required regulatory and shareholder approvals