Obsidian Energy announces updates to our syndicated credit facility

Calgary, Alberta – OBSIDIAN ENERGY LTD. (TSX: OBE) (OTCQX: OBELF) (“Obsidian Energy“, the “Company“, “we“, “us” or “our“) announced that our semi-annual borrowing base redetermination has been completed, resulting in a $35 million increase to our revolving syndicated credit facility from $225 million to $260 million.

The Company has a reserve-based syndicated credit facility with an aggregate amount available under the syndicated credit facility of $415 million, which now consists of a $260 million revolving credit facility and a $155 million non-revolving term loan. The revolving period under the syndicated credit facility remains at May 31, 2022, with the maturity date of both the revolving credit facility and non-revolving term loan of November 30, 2022.

The reserve-based syndicated credit facility is subject to a semi-annual borrowing base redetermination typically in May and November of each year. As previously disclosed, the Company has a revolving period reconfirmation date on January 17, 2022, whereby, on or prior to such date, the lenders may accelerate the end of the revolving period to February 1, 2022. In this case, the end date of the term-out period would remain unchanged at November 30, 2022. Furthermore, the Company’s revolving credit facility has a one-time adjustment to reduce our undrawn availability to $35 million effective December 31, 2021. Any borrowing availability in excess of that amount will be used to reduce amounts outstanding on the non-revolving term loan and our senior notes.

As the Company looks ahead to 2022, we plan to refinance our debt facilities with the objective of incorporating senior and subordinated debt. This structure is expected to provide the Company with a stable capital source that provides operational liquidity and a longer-term maturity profile.

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