CBWBF - Obsidian Energy proposes issuance of up to C$125M senior unsecured notes and new syndicated credit facilities

• Obsidian Energy ( NYSE: OBE ) intends to commence private placement of five-year senior unsecured notes in the amount of up to C$125M as part of debt refinancing.
• In connection with the private placement of the notes, the company intends to enter into the New Credit Facilities with a syndicate of lenders including the Royal Bank of Canada ( RY ), Bank of Montreal ( BMO ) and Canadian Western Bank ( OTCPK:CBWBF ), which will provide for up to C$225M available to be drawn. The $225M of availability will consist of $175M revolving syndicated credit facilities and up to $50M non-revolving term loan.
• The company intends to use the net proceeds of the offering, together with approximately $30M of the New Term Loan and approximately $130M of the New Syndicated Facilities , to repay all of existing senior secured notes due November 30, 2022, to repay the outstanding balances under existing credit facilities due November 30, 2022 and repay the PROP limited recourse loan due on December 31, 2022, which was incurred by the company in connection with 2021 acquisition of the remaining 45% interest in the Peace River Oil Partnership.
• The maturity date of the New Term Loan will be December 31, 2022.

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