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CALGARY, Alberta, Jan. 04, 2022 (GLOBE NEWSWIRE) -- Pieridae Energy Limited (“Pieridae” or the “Company”) (PEA.TO) today announced it has reached an agreement with its senior secured lender Third Eye Capital Corporation (“TEC”) to extend payment of the $50 million term loan deferred fee (which was due January 4, 2022) and to amend certain other terms and covenants of the Credit Agreement first signed with TEC in October of 2019, related to the purchase of Shell’s Foothills assets.
Under the updated terms of the Credit Agreement, the $50 million deferred fee is now incorporated as part of the overall loan due on October 16, 2023. However, the deferred fee will not accrue interest while outstanding. Additionally, certain other modifications to the Credit Agreement were negotiated, including the continued waiver of the requirement to hedge 60 per cent of production on an 18-month rolling basis, through the end of February 2022. This allows Pieridae to continue to take better advantage of strong winter commodity prices.
“I want to thank TEC for their continued, long-term support of Pieridae, and their willingness to work with us and ultimately reach an agreement that benefits both parties,” said Pieridae’s Chief Executive Officer Alfred Sorensen. “Their ongoing support of Pieridae since 2019 is greatly appreciated, as is their professionalism during detailed discussions over the past number of weeks.
“While we have updated our loan agreement with TEC, this does not conclude the Strategic Review of the Company,” adds Sorensen. “We initiated this process last summer to identify, examine and consider a range of alternatives with a view to enhancing shareholder value. With the amended agreement announced today, we will now continue to work with certain parties who have expressed interest through the Strategic Review on potential long-term solutions for the Company.”
About Pieridae
Pieridae is a majority Canadian-owned corporation based in Calgary that was founded in 2011. The Company is focused on the exploration, extraction and processing of natural gas as well as analyzing options for a reconfigured LNG Project that fits with the current environment and would supply Europe and other markets. Pieridae provides the energy to fuel people’s daily lives while supporting the environment and the transition to a lower-carbon economy. After completion of all the transactions disclosed in this news release, Pieridae has 157,641,871 common shares issued and outstanding which trade on the TSX (PEA.TO).
https://www.globenewswire.com/en/news-release/2022/01/04/2360676/0/en/Updated-Credit-Agreement-Reached-With-TEC.html