Peyto lifts two-year revolver to C$1 billion led by Bank of Montreal

By Susanna Moon

Chicago, April 25 - Peyto Exploration and Development Corp. expanded its two-year unsecured revolving credit facility to C$1 billion from C$730 million.

The syndicate of lenders, led by Bank of Montreal, included Union Bank Canada Branch, Royal Bank of Canada, Canadian Imperial Bank of Commerce, Toronto-Dominion Bank, Scotiabank, HSBC Bank Canada, Alberta Treasury Branch, and Canadian Western Bank, according to a company press release.

In addition, the note purchase agreements for the C$150 million of senior secured notes that were issued under a private shelf agreement with Prudential Investment Management Inc. has been amended to reflect the removal of the security, the release noted.

After the facility increase, Peyto's total borrowing capacity rose to C$1.15 billion, with C$1 billion of unsecured, covenant-based revolving bank credit and C$150 million of senior unsecured long-term notes.

"Despite this increase in credit capacity, Peyto plans to maintain a strong and flexible balance sheet which, in combination with its high quality asset base and low cost advantage, allows the company to be opportunistic in this environment," the release said.

Peyto is a natural gas weighted energy trust based in Calgary, Alta.

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