Stampede Drilling entered into a new $50 million credit agreement with HSBC Bank Canada and The Toronto-Dominion Bank.
Under the credit agreement, which has an initial term of three years, Stampede will have an available limit of $20 million under a non-revolving term loan, $15 million under a revolving credit facility and $15 million under an additional revolving credit facility.
The proceeds of the term loan facility will be used to fund the repayment of Stampede’s existing indebtedness under its current amended and restated facility letter with HSBC Bank Canada. The proceeds of the syndicated facility and operating facility will be used for the general corporate purposes of the company.
The credit agreement provides for customary positive and negative covenants, including limitations and permitted dealings in respect of debt, acquisitions, dispositions, distributions and capital expenditures.
