Petroflow Enters $200 Million Credit Facility
Petroflow Energy Ltd. announced that effective April 11, 2008, the Company entered into an amended credit facility agreement. The New Facility is a $US 200 million credit facility composed of two tranches, "A" and "B". In total the Company increased its current borrowing capacity to U.S. $88 million. Coupled with an interim increase of $US 11 million received in February 2008, the New Facility increased the Company's borrowing capacity by $US 33.5 million since its 2007 year end.
The "A" tranche has a maturity date of January 1, 2012 with a borrowing base of $US 82 million. Interest rates on the "A" tranche range from LIBOR plus 2% to LIBOR plus 2.5% depending on the percentage of funds actually borrowed. The "B" tranche matures on January 1, 2010, has a borrowing base of $US 6 million, and bears interest at LIBOR plus 4%. In the New Facility, Guaranty Bank has assumed the role as lead agent with Texas Capital Bank acting as co-agent. Substantially all other terms remain the same as the Company's previous credit facility.
Duncan Moodie, the Company's CFO stated that "the New Facility will greatly assist Petroflow in its 2008 capital program. We are especially pleased to continue our relationship with both Guaranty Bank and Texas Capital Bank. We appreciate the confidence that they have shown in the Company as evidenced by the significant increase in our borrowing base and extension of the loan maturity date by more than three years."