Daily News: December 11, 2015

Lenders Reduce Delphi Energy Credit Facility to $132.5MM

The National Bank of Canada, Bank of Nova Scotia and Alberta Treasury Branches reduced Delphi Energy’s credit facility by 5% to $132.5 million following their semiannual review of the company.

The credit facility will now consist of a revolving facility of $117.5 million and an operating facility of $15.0 million. Additionally, in an effort to minimize costs, Delphi eliminated $35.0 million of credit capacity, which was only accessible to the company upon consent from the lenders, reducing the payment of standby fees.

At December 31, 2015, the company expects to have outstanding bank indebtedness of approximately $100.0 million, equivalent to 75% drawn on its reduced credit facility. The total credit capacity of Delphi currently stands at $146.5 million. With net debt reduced by approximately $60.0 million, Delphi expects to save approximately $2.0 to $2.5 million in interest costs on an annual basis.

Calgary-based Delphi Energy is a public oil and natural gas company.