Trinidad Drilling Renews Credit Agreement
Trinidad Drilling has amended its credit facilities, including extended terms and an additional US dollar denominated revolving facility.
"The extension and amendment to our existing credit agreement better aligns our credit facilities with the Company's growing US and international presence. In addition, the extended maturity dates give Trinidad additional flexibility to consider refinancing, redemption and other alternatives, prior to the maturity of our convertible debentures in July 2012," said Brent Conway, Trinidad's Executive Vice President and Chief Financial Officer.
Trinidad's amended credit facilities now include:
- A Canadian revolving facility of C$150 million and a US revolving facility of US $100 million;
- A Canadian term facility with an outstanding principal amount of approximately C $67.5 million; and
- A US term facility with an outstanding principal amount of approximately of US $84.3 million.
The maturity dates on all three credit facilities have been extended to April 2012, except for approximately US$4.7 million under the US term facility which remains due in May 2011. The interest rates associated with the credit agreement have been adjusted to reflect current market conditions; they continue to be based on LIBOR and BA rates and now incorporate a tiered interest rate, which varies depending on the results of the leverage ratio. The term facilities continue to have minimal repayment requirements of one percent per annum until April 2012, other than the portion of the US dollar term facility which was not extended as noted above.