Bellatrix Announces Closing of Debt Refinancing Transaction and Upcoming Investor Events
12 September 2018 - 7:00AM
Bellatrix Exploration Ltd. (“Bellatrix” or the “Company”) (TSX,
NYSE: BXE) today announces that it has closed the debt refinancing
transaction previously announced on July 26, 2018. The
transaction immediately extends the maturity of over one-third of
the Company’s existing unsecured senior notes due 2020 (the “2020
Notes”) by three years, reduces outstanding debt by approximately
$10.5 million prior to any new money advances, and sets the stage
for additional 2020 Note exchanges and/or acquisitions in the
future that, the Company expects, will significantly increase its
ability to refinance all of the remaining 2020 Notes in advance of
their stated maturity, all while minimizing equity dilution to the
Company’s shareholders.
Transaction Highlights
- Exchanged US$80 million of existing 2020 Notes for US$72
million of Second Lien Notes due 2023, extending the maturity of
over 1/3 of the outstanding 2020 Notes by 3 years, reducing
outstanding debt by approximately $10.5 million, and maintaining
the cash interest rate at 8.5%.
- A new money commitment of US$30 million to US$40 million in
additional Second Lien Notes for capital expenditures, development
capital, and subsequent 2020 Note purchases. Concurrent with
closing, Bellatrix drew down US$15 million of this new money
commitment.
- The transaction provides for a basket for up to US$50 million
of additional Second Lien Notes for subsequent 2020 Note exchanges,
and the capacity to issue additional subordinate secured and
unsecured debt in subsequent refinancing and capital raising
activities.
In connection with the completion of the
transactions completed today, the lenders under the Company’s
syndicated revolving credit facility have reconfirmed the Company’s
borrowing base at $100 million, with total commitments set at $95
million. Brent Eshleman, President & CEO commented: “We are
very pleased with the consummation of this financing. It is
one step of many that we have undertaken or plan to take to address
the current weak natural gas price environment. Bellatrix has
a very strong asset base that we believe will produce strong value
for years into the future. We are committed to having a
capital structure and cost structure that complement our strong
asset base in this challenging environment.”
Upcoming Investor Events
Brent Eshleman, President & CEO will be
presenting at the 2018 Peters & Co. Limited Energy Conference
in Toronto on Wednesday, September 12, 2018.
Bellatrix will host its annual Analyst Day
presentation on September 18, 2018. The presentation will
provide a discussion of Bellatrix's asset base, key operational
areas, and corporate strategy. The event will be held in
Calgary for members of the financial analyst community. A
copy of the presentation will be available on Bellatrix's website
on September 18, 2018 at www.bxe.com.
Bellatrix Exploration Ltd. is a publicly traded
Western Canadian based growth oriented oil and gas company engaged
in the exploration for, and the acquisition, development and
production of oil and natural gas reserves, with highly
concentrated operations in west central Alberta, principally
focused on profitable development of the Spirit River liquids rich
natural gas play.
For further information, please contact:
Steve Toth, CFA, Vice President, Investor
Relations & Corporate Development (403) 750-1270
Bellatrix Exploration Ltd.1920,
800 – 5th Avenue SWCalgary, Alberta, Canada T2P 3T6Phone: (403)
266-8670Fax: (403) 264-8163www.bxe.com
FORWARD LOOKING STATEMENTS: Certain information
contained in this press release may contain forward looking
statements within the meaning of applicable securities laws. The
use of any of the words "forecast", "believe", "expect",
"position", "maintain", "continue", "plan", "future", "estimate",
"intend", "strategy", "anticipate", "enhance" and similar
expressions are intended to identify forward-looking statements.
More particularly and without limitation, this document contains
forward-looking statements concerning the expectation that the
recently completed debt refinancing transaction will significantly
increase the Company's ability to refinance all of the remaining
2020 Notes in advance of their stated maturity, while minimizing
equity dilution to the Company’s shareholders; and management’s
expectations regarding the timing of upcoming investor events.
Forward-looking statements necessarily involve risks. Events or
circumstances may cause actual results to differ materially from
those predicted, as a result of the risk factors set out and other
known and unknown risks, uncertainties, and other factors, many of
which are beyond the control of Bellatrix. Readers are cautioned
that the foregoing list is not exhaustive of all factors and
assumptions which have been used. As a consequence, actual results
may differ materially from those anticipated in the forward-looking
statements. Additional information on these and other factors that
could affect Bellatrix's operations and financial results are
included in reports (including, without limitation, under the
heading "Risk Factors" in the Company's Annual Information Form for
the year ended December 31, 2017) on file with Canadian and United
States securities regulatory authorities and may be accessed
through the SEDAR website (www.sedar.com), through the SEC website
(www.sec.gov), and at Bellatrix's website (www.bxe.com).
Furthermore, the forward looking statements contained herein are
made as at the date hereof and Bellatrix does not undertake any
obligation to update publicly or to revise any of the included
forward looking statements, whether as a result of new information,
future events or otherwise, except as may be required by applicable
securities laws.