Seven Generations Energy‘s (7G) lenders have increased the size of the company’s senior secured credit facility by about 27%, from $1.1 billion to $1.4 billion. RBC Capital Markets led a lender syndicate of 13 financial institutions.
7G’s credit facility has moved from a reserve-based structure, with lending capacity re-determined on a semi-annual basis, to a covenant-based facility governed by senior secured leverage and interest coverage metrics. The new facility structure provides 7G with four years of funding and ensures committed credit capacity across the commodity price cycle.
“Our financial strength is reflected in this additional credit capacity and flexibility. Shifting away from reserves-based security to a four-year covenant-based facility recognizes the high quality of our assets, their capacity to generate profitable growth, a large established production base with processing, transportation and markets, as well as our track record of successfully converting our significant resources to reserves, production, cash flow and earnings,” said Chris Law, 7G’s CFO.
The credit facility matures on June 9, 2021.
Based in Grande Prairie, Alberta, Seven Generations is a low-supply-cost, high-growth Canadian natural gas developer.