Advantage Announces Renewal of Credit Facility
20 Juin 2009 - 12:00AM
PR Newswire (US)
CALGARY, June 19 /PRNewswire-FirstCall/ -- Advantage Energy Income
Fund ("Advantage" or "the Fund") (AVN.UN - TSX, AAV - NYSE)
announced today that its lenders have completed their review of its
borrowing base and that Advantage has received an extension of its
credit facility (the "Credit Facilities"). The Credit Facilities
total $710 million comprised of a $20 million demand operating loan
facility, a $630 million extendible revolving credit facility and a
$60 million liquidity facility. The Credit Facilities are provided
by a syndicate of financial institutions. Various borrowing options
are available under the Credit Facilities, including prime rate
based advances, US base rate advances, US dollar LIBOR advances and
bankers' acceptances loans. The interest rates applicable to the
Credit Facilities are based on either prime rate, US base rate,
LIBOR or bankers' acceptance rates at the Fund's option, subject to
certain basis point or stamping fee adjustments ranging from 1.5%
to 6.9%, depending on the Trust's debt to cash flow ratio. The
Credit Facilities are secured by a $1 billion floating charge
demand debenture, a general security agreement and a subordination
agreement from the Trust covering all assets and cash flows. The
amounts available to Advantage from time to time under the Credit
Facilities are based upon the borrowing base determined by the
lenders and which is redetermined on a semi-annual basis by those
lenders. The borrowing base constitutes a revolving facility for a
364 day term which is extendible annually for a further 364 day
revolving period, subject to a one year term maturity as to lenders
not agreeing to such annual extension, with the next annual review
anticipated to take place in June 2010. The $60 million liquidity
facility will, subject to renewal, expire on October 31, 2009. The
Credit Facilities contain standard commercial covenants for credit
facilities of this nature. The only financial covenant is a
requirement for Advantage to maintain a minimum cash flow to
interest expense ratio of 3.5:1, determined on a rolling
four-quarter basis. Advisory The information in this press release
contains certain forward-looking statements. These statements
relate to future events or our future performance. All statements
other than statements of historical fact may be forward-looking
statements. Forward-looking statements are often, but not always,
identified by the use of words such as "seek", "anticipate",
"plan", "continue", "estimate", "expect", "may", "will", "project",
"predict", "potential", "targeting", "intend", "could", "might",
"should", "believe", "would" and similar expressions. These
statements involve substantial known and unknown risks and
uncertainties, certain of which are beyond Advantage's control,
including: the impact of general economic conditions; industry
conditions; changes in laws and regulations including the adoption
of new environmental laws and regulations and changes in how they
are interpreted and enforced; fluctuations in commodity prices and
foreign exchange and interest rates; stock market volatility and
market valuations; volatility in market prices for oil and natural
gas; liabilities inherent in oil and natural gas operations;
uncertainties associated with estimating oil and natural gas
reserves; competition for, among other things, capital,
acquisitions, of reserves, undeveloped lands and skilled personnel;
incorrect assessments of the value of acquisitions; changes in
income tax laws or changes in tax laws and incentive programs
relating to the oil and gas industry and income trusts; geological,
technical, drilling and processing problems and other difficulties
in producing petroleum reserves; and obtaining required approvals
of regulatory authorities. Advantage's actual results, performance
or achievement could differ materially from those expressed in, or
implied by, such forward-looking statements and, accordingly, no
assurances can be given that any of the events anticipated by the
forward-looking statements will transpire or occur or, if any of
them do, what benefits that Advantage will derive from them. Except
as required by law, Advantage undertakes no obligation to publicly
update or revise any forward-looking statements. DATASOURCE:
Advantage Energy Income Fund CONTACT: Investor Relations, Toll
free: 1-866-393-0393, ADVANTAGE ENERGY INCOME FUND, 700, 400 - 3rd
Avenue SW, Calgary, Alberta, T2P 4H2, Phone: (403) 718-8000, Fax:
(403) 718-8300, Web Site: http://www.advantageincome.com/, E-mail:
Copyright