BOK Financial reaffirmed the borrowing base of the revolving line of credit of BNK Petroleum US, an indirect, wholly-owned subsidiary of Kolibri Global Energy, at $40 million. The current outstanding amount drawn on the credit facility is $29 million.
The credit facility was also amended to allow cash distributions from BNK to Kolibri, subject to certain conditions, which include: (1) 70% or less of the borrowing base of the loan remains outstanding after the distribution and (2) the maximum leverage ratio on a pro forma basis immediately before and after the distribution is less than or equal to 1.25 to 1. The amendments also reduced the minimum term of the hedging contracts the company is required to put in place from 24 months to 18 months.
“We are very pleased to have BOKF’s continued support as we continue to accelerate the development of our Tishomingo project,” Wolf Regener, president and CEO of Kolibri Global Energy, said. “These changes would allow the company to potentially return capital to shareholders in the future and provide us with greater flexibility for our hedging strategy.”
The credit facility provides for interest-only payments until the June 2026 maturity date, with bi-annual scheduled reserve redeterminations.
