Peyto Exploration and Development Corp. (TO: PEY) expanded the company's revolving credit facility from C $730 million to C $1 billion.
Peyto’s syndicate of lenders is led by Bank of Montreal and includes Union Bank Canada Branch, Royal Bank of Canada, Canadian Imperial Bank of Commerce, Toronto-Dominion Bank, Scotiabank, HSBC Bank Canada, Alberta Treasury Branch, and Canadian Western Bank.
This expanded, unsecured, covenant based credit facility has a two-year term and contains the same financial covenants as the previous secured revolver. In addition, the note purchase agreements for the C $150 million of senior secured notes that were issued, pursuant to a private shelf agreement with Prudential Investment Management Inc., has been amended to reflect the removal of the security.
Subsequent to this facility expansion, Peyto's total borrowing capacity increases to C $1.15 billion, with C $1 billion of unsecured, covenant based revolving bank credit and C $150 million of senior unsecured long-term notes. Despite this increase in credit capacity, Peyto plans to maintain a strong and flexible balance sheet which, in combination with its high quality asset base and low cost advantage, allows the company to be opportunistic in this environment.
Peyto Exploration and Development Corp. is an explorer and producer of unconventional natural gas in Alberta's Deep Basin. The company is based in Calgary.
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