Delphi Energy has renewed the borrowing base of its senior credit facility led by Alberta Treasury Branches has been renewed at $80 million.
Further, conditional upon completion of the recapitalization transaction, the revolving period of the senior credit facility has been extended to May 28, 2020, with the maturity date extended to May 29, 2021.
If the recapitalization transaction is not completed before December 13, 2019, then the company’s next scheduled borrowing base redetermination under the senior credit facility will be on December 13, 2019.
Completion of this semi-annual borrowing base redetermination satisfies one of the conditions to the support by Luminus Management, on behalf of its pooled investment vehicles of the company’s previously announced recapitalization transaction under the terms of the recapitalization transaction agreement entered into between the company and Luminus on September 23, 2019. Completion of the recapitalization transaction remains subject to the satisfaction of several other conditions, including receipt of required securityholder approvals at the securityholder meetings scheduled to be held on November 15, 2019.
Delphi had previously completed the private placement offerings of subscription receipts relating to the recapitalization transaction for the maximum total gross proceeds of $46.5 million.
The recapitalization transaction is expected to become effective on or around November 26, 2019 if all of the conditions precedent to such effectiveness are satisfied or waived on or before that date.
Based in Calgary, Delphi Energy produces liquids-rich natural gas.
