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).