Mr. Paul Wanklyn reports
CEQUENCE ENERGY PROVIDES CREDIT FACILITY UPDATE
Cequence Energy Ltd. has voluntarily elected to reduce its maximum borrowing capacity under its credit facility to $60-million (previously $135-million). The reduced facility is part of the company's continuing cost reduction initiatives and will save excess standby and commitment fees. The company is currently undrawn on its credit facility.
The company's capital structure includes senior notes of $60-million that mature in 2018, which, together with the $60-million credit facility, result in total company credit capacity of $120-million. The company believes that its total credit capacity will provide sufficient liquidity for the execution of the company's business plan, particularly in the context of the company's continuing review of alternatives.
Concurrent with the voluntary credit facility reduction, the company also recently completed its borrowing base review with its syndicate of lenders. In light of feedback received during the borrowing base review and based on the company's current circumstances and business plan, Cequence expects that incremental lending value would be available, should the company require additional financing for acquisitions or capital expenditures.
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