On May 18, 2017, Obsidian Energy Ltd. (formerly known as Penn West Petroleum Ltd.) completed a new reserve-based syndicated revolving facility.
The syndicate group included nine lenders. Royal Bank of Canada and The Bank of Nova Scotia acted as co-lead arrangers and joint bookrunners for the Credit Facility. The underlying borrowing base for the Credit Facility is $550 million, less the amount of outstanding pari passu senior notes, such that Penn West had $410 million of availability under the Credit Facility as of the closing.
The new Credit Facility amended and restated in full the $600-million secured revolving facility Penn West had with a syndicate of domestic and foreign bank lenders.
This new financing is a further example of Penn West’s positive momentum, recovery and re-growth after several years of depressed commodity prices.
Obsidian Energy was represented by Cassels Brock & Blackwell LLP.
The Cassels Brock team included Mark Rasile and Hilary Fender (financial services).
The Lenders were represented by Torys LLP. The Torys team included Kevin Fougere, David Kolesar and Tyrel Henderson (banking and debt finance).