National Bank of Canada, ATB Financial and Canadian Western Bank provided a $100 million senior secured lending facility to help fund Spartan Delta’s acquisition of substantially all of the assets of Bellatrix Exploration.
The acquisition was completed this week and funded through a combination of cash on hand and funds from the senior secured lending facility. In addition, gross proceeds of $64 million were released to the Spartan Delta pursuant to its previously announced private placement of subscription receipts and common shares of Spartan. Following the completion of the acquisition, Spartan Delta’s bank debt, net of working capital, is estimated to be approximately $28.1 million.
The purchase price for the acquisition was $87.6 million, paid in cash. In addition, Spartan agreed to assume certain liabilities of approximately $21.2 million.
The assets of the acquisition include high-quality, multi-zone, oil and gas operated production alongside a large land base and strategic infrastructure footprint. National Bank Financial acted as financial advisor and TD Securities acted as strategic advisor to Spartan with respect to the acquisition.
National Bank Financial, TD Securities, Peters & Co. Limited and Eight Capital acted as financial advisors to Spartan with respect to the offering. Stikeman Elliott acted as legal counsel to Spartan with respect to the acquisition, the credit facility and the offering.
Spartan Delta is a Calgary, AB-based company engaged in oil and gas exploration and development.