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  • Obsidian Energy (OBE) has closed its previously announced private placement offering
  • The offering consisted of $127.6 million aggregate principal amount of 11.95 percent five-year senior unsecured notes due July 27, 2027
  • Obsidian Energy also entered into a new $175.0 million revolving syndicated credit facility and a new $30.0 million non-revolving term loan
  • The company has used the net proceeds of the offering, together with initial draws on the new credit facilities, to repay its outstanding debt
  • Obsidian Energy Ltd. is an intermediate-sized oil and gas producer
  • Obsidian Energy Ltd. (OBE) is up 3.64 per cent on the day, trading at C$9.69 per share at 10:45 am ET

Obsidian Energy (OBE) has closed its previously announced private placement offering.

The offering consisted of $127.6 million aggregate principal amount of 11.95 percent five-year senior unsecured notes due July 27, 2027.

Obsidian Energy also entered into a new $175.0 million revolving syndicated credit facility and a new $30.0 million non-revolving term loan with the Royal Bank of Canada, Bank of Montreal and Canadian Western Bank.

The company has used the net proceeds of the offering, together with initial draws on the new credit facilities, to repay its outstanding debt including US$35.8 million for all senior secured notes that were due November 30, 2022, $227.2 million for all outstanding amounts under the company’s previous credit facilities that were due November 30, 2022 and $6.6 million for all outstanding amounts under the Peace River Operating Partnership limited recourse loan that were due December 31, 2022.

Obsidian has also closed out hedges that were initially put in place for the PROP 45 limited recourse financing (US$3.5 million) and fees associated with the refinancing ($6.1 million).

Following these repayments, the company has $287.6 million of long-term indebtedness, including $130 million drawn on our $175 million revolving syndicated credit facility and $30 million drawn on our non-revolving term loan.

Stephen Loukas, Obsidian Energy’s Interim President and CEO, commented on the news.

“We’re pleased to complete our refinancing project. The size and tenor of this issuance, combined with the New Credit Facilities creates a balanced senior and junior debt structure that provides Obsidian Energy greater operational and financial flexibility. Moreover, this structure provides us the ability to execute our corporate plans as well as act on opportunities to create further value for our stakeholders.”

The notes were issued at a price of $980.00 per $1,000.00 principal amount for aggregate gross proceeds of approximately $125.0 million. The notes have a 11.95 percent coupon, payable semi-annually in equal installments.

RBC Capital Markets and BMO Capital Markets acted as joint bookrunners for the offering.

Obsidian Energy Ltd. is an intermediate-sized oil and gas producer with strategic assets in Alberta. 

Obsidian Energy Ltd. (OBE) is up 3.64 per cent on the day, trading at C$9.69 per share at 10:45 am ET.


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