On May 18, 2017, Penn West Petroleum Ltd., a prominent Canadian conventional oil and natural gas producer, listed on the Toronto Stock Exchange and the New York Stock Exchange, 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 closing. The initial revolving period of the credit facility ends on May 17, 2018, with an additional one year term out period, and is subject to a semi-annual borrowing base redetermination in May and November of each year.
The 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 continuing positive momentum, as it recovers and re-grows after several years of depressed commodity prices.
Penn West was represented by a team that included Mark Rasile and Hilary Fender (Financial Services).