True Energy Trust announced that its lenders have completed their semi annual review of its borrowing base and that True has received an extension of the revolving period of its credit facility until June 30, 2010.
True received approval from its lending syndicate on April 23, 2009. The amount of the renewed credit facility is $140 million, a decrease of $12 million from the expiring facility. The facility is subject to review on June 29, 2009 with the next scheduled semi annual review to be completed on September 30, 2009. The credit facility consists of a $13.8 million demand operating facility provided by one Canadian bank and $126.2 million revolving term credit facility provided by a syndicate of two Canadian chartered banks, a Canadian financial institution, one institutional lender and a US bank.
True's total net debt, excluding unrealized commodity contract assets and liabilities, future income taxes and asset retirement obligations, as at March 31, 2009, was $213.9 million, representing $131.6 million outstanding on the credit facility, $81.6 million in convertible debentures (liability component) and a $0.7 million working capital deficiency. Based on the renewed credit facility amount and net debt as at March 31, 2009, True had approximately $8.4 million available under the renewed credit facility to assist in managing its operations and capital program. True is fully compliant with all of its debt covenants.
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