ATB Financial Executes Term Sheet for Artisan Energy Revolver
Artisan Energy announced it has executed a non-binding indicative term sheet dated February 13, 2014 with ATB Financial that contemplates a secured $5 million revolving credit facility.
The ATB facility would be secured by, among other things, a general security agreement providing a first floating charge over all present and after acquired real and personal property of the corporation and an undertaking to grant, at the request of ATB, a first fixed charge against all property interests of the corporation. Interest payable on the facility would be the prime rate of interest plus 1.75% per annum.
The facility is being granted to finance development of Artisan’s developmental light oil projects. The formal granting of the facility remains subject to ATB’s satisfactory completion of due diligence and internal credit approval, and closing of the acquisition of the provost asset and the offering. Obtaining facility is a condition to completion of the offering.
Artisan Energy also announced the extension of its current loan facility. The loan facility, currently drawn to $3.9 million from Tallinn Capital, was scheduled to have matured on October 31, 2013. The company entered into a commitment letter with Tallinn Capital to amend the facility. Key provisions of the amendments include, but are not limited, to an extension of the maturity date from October 31, 2013 to April 30, 2014.
Artisan is an oil and gas producer that holds near a 100% working interest in 27,787 core acres of land in Central and Southeast Alberta, Canada.