Scotiabank Agents Touchstone Credit Facility
Touchstone Exploration announced that two of its indirect wholly owned Trinidad subsidiaries, Touchstone Exploration (Trinidad) and Primera Oil and Gas, have entered into an agreement with The Bank of Nova Scotia, as administrative agent, collateral agent and initial lender, for a $50 million credit facility maturing on December 2, 2017. Scotiabank Trinidad and Tobago acted as sole lead arranger.
Up to $15 million will be available immediately, with the remaining balance available following the periodic redetermination of the borrowing base calculated by the value assigned to the net proved reserves attributable to Touchstone’s onshore properties located in the Republic of Trinidad and Tobago. The proceeds borrowed under the credit facility will be used by the borrowers for the exploration, development, production and sale of petroleum of those properties and for general corporate purposes.
The credit facility will bear interest at a rate equal to an adjusted LIBO rate or the lender’s base rate, as defined, plus an applicable margin. The company and its material subsidiaries other than the Borrowers have guaranteed the obligations of the borrowers related to the credit facility. The credit facility is principally secured by a pledge of the Touchstone’s equity interests in its material subsidiaries, together with their respective assets.
Scott Budau, CFO, said, “The Trinidad-based credit facility provides us the financial flexibility to build upon our successful 2014 Trinidad drilling program into 2015.”
Touchstone Exploration is a Calgary-based company engaged in the business of acquiring interests in petroleum and natural gas rights, and the exploration, development, production and sale of petroleum and natural gas.