Bonterra Energy shrinks revolvers to C$340 million, adds accordion

By Angela McDaniels

Tacoma, Wash., May 21 – Bonterra Energy Corp. said it amended its revolving credit facilities, decreasing their sizes and adding an accordion feature.

The amended credit facilities are comprised of a C$300 million syndicated revolver (previously C$330 million) and a C$40 million non-syndicated revolver (previously C$50 million).

The terms of the amended facilities provide that the loan is revolving to April 28, 2020, with a maturity date of April 28, 2021, subject to annual review.

The new accordion feature allows the company to obtain up to C$40 million of future funding for opportunities outside of normal operations, such as acquisitions, subject to unanimous lender approval.

Currently, Bonterra has about C$300 million drawn on the C$340 million revolvers.

The company said the amended credit facilities better reflect its current operating needs and strategy.

According to a company news release, the terms of the amended facilities are substantially consistent with those governing the previous credit facilities, with enhanced compliance and reporting features related to Alberta Energy Regulator regulations regarding abandonment and reclamation activities and restrictions on acquisition and disposition activity to ensure strict conformance with pre-determined liability management ratings.

The company said the amended facilities give it ample liquidity and sufficient financial flexibility to execute on its business plan, which includes directing free funds flow to ongoing debt repayment. Bonterra anticipates generating C$49 million to C$54 million of free funds flow for 2019.

Bonterra Energy is a conventional oil and gas corporation based in Calgary, Alta.

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