Trident Exploration Corp. has entered into an extendible revolving credit facility with a capacity of $20 million and a senior secured second lien term loan facility for proceeds of $60 million.
The Revolving Credit Facility carries a variable rate on borrowings that approximates 4.75% per annum and matures on May 31, 2019, with the capacity to annually extend each May commencing May 2018. The Term Loan carries a fixed rate of 7.15% per annum and matures on July 31, 2021.
In conjunction with the financing, the company issued 5.1 million common share purchase warrants, each exercisable into a Trident common share on a one-for-one basis at the holder's option plus $0.87 per warrant, subject to customary adjustments in accordance with the terms thereof. The warrant issue represents 2.4% of the 208.7 million Trident common shares outstanding. Cash costs attributed to the closing amounted to $75,000 plus legal costs incurred.
The use of proceeds from the Term Loan repaid the company's existing debt of $56 million under its maturing facility plus added $4 million of working capital. The Revolving Credit Facility is undrawn and fully available.
Trident Exploration Corp. is a private, independent natural gas production company, principally focused on the exploration for and exploitation of natural gas resources in the Western Canadian Sedimentary Basin. Trident’s operations are in Alberta, Canada and substantially target coalbed methane as well as conventional shallow gas. Trident’s operations are focused in two core areas – Shallow Cretaceous Gas concentrating in the Central Alberta shallow upper Cretaceous deposits within the WCSB; and the Mannville CBM operating area consisting primarily of gas production from Mannville CBM deposits in northern Alberta.