CALGARY, AB, Dec. 22, 2021 /CNW/ - Touchstone Exploration Inc.
("Touchstone", "we", "our", "us" or the "Company") (TSX: TXP)
(LSE: TXP) is pleased to announce that it has entered into an
amended and restated loan agreement with its Trinidad based lender providing for a
$10 million increase in the principal
balance to $30 million (the "Amended
Loan Agreement").
Touchstone currently has $15
million of the loan principal balance drawn and anticipates
withdrawing the remaining $15 million
available balance prior to the end of 2021. The Amended Loan
Agreement provides enhanced financial flexibility at attractive
after tax pricing.
The Amended Loan Agreement did not alter any material terms of
the Company's prior loan agreement, save for an additional
underwriting fee of $50,000 payable
to the lender, equivalent to 0.5% of the increased principal
amount. The following material terms and conditions of the original
loan agreement remain applicable:
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Borrower
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Touchstone
Exploration (Trinidad) Ltd.
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Facility
type
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Senior secured
syndicated loan, with Republic Bank Limited acting as initial
lender, arranger and administrative agent
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Revised facility
amount
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US$30
million
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Principal availability
period
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Principal may be
withdrawn prior to January 1, 2022
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Term
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June 15, 2027 - seven
years from the initial closing date
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Fixed interest
rate
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7.85% per annum,
payable quarterly in arrears
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Principal amortization
schedule
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Twenty equal and
consecutive quarterly principal repayments commencing on September
15, 2022
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Prepayments
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Currently permitted
with a 1.0% penalty and a 90-day notice period, no penalties
payable after June 15, 2023
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Collateral
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Senior mortgage over
fixed assets of the Borrower and its subsidiaries and a corporate
guarantee from Touchstone Exploration Inc.
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Financial covenants (to
be initially tested for the year ended December 31,
2022)
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Net Senior Funded
Debt to EBITDA less than 2.5 times
Net Senior Funded
Debt to Book Value Equity less than 0.7 times
Debt Service Coverage
Ratio greater than 2.5 times
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Cash reserve
balance
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Maintain a balance of
not less than the equivalent of two quarterly interest payments
due
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Touchstone Exploration Inc.
Touchstone Exploration Inc. is a Calgary, Alberta based company engaged in the
business of acquiring interests in petroleum and natural gas rights
and the exploration, development, production and sale of petroleum
and natural gas. Touchstone is currently active in onshore
properties located in the Republic of Trinidad and Tobago. The Company's common
shares are traded on the Toronto Stock Exchange and the AIM market
of the London Stock Exchange under the symbol "TXP".
Advisories
Forward-Looking Statements
Certain information provided in this news release may constitute
forward-looking statements and information (collectively,
"forward-looking statements") within the meaning of applicable
securities laws. Such forward-looking statements include, without
limitation, forecasts, estimates, expectations, and objectives for
future operations that are subject to assumptions, risks, and
uncertainties, many of which are beyond the control of the Company.
Forward-looking statements are statements that are not historical
facts and are generally, but not always, identified by the words
"expects", "plans", "anticipates", "believes", "intends",
"estimates", "projects", "potential" and similar expressions, or
are events or conditions that "will", "would", "may", "could" or
"should" occur or be achieved.
Forward-looking statements in this news release may include, but
is not limited to, statements relating to the Company's expectation
and timing of withdrawing the Amended Loan Agreement available
principal balance. Although the Company believes that the
expectations and assumptions on which the forward-looking
statements are based are reasonable, undue reliance should not be
placed on the forward-looking statements because the Company can
give no assurance that they will prove to be correct. Since
forward-looking statements address future events and conditions, by
their very nature they involve inherent risks and uncertainties.
Actual results could differ materially from those currently
anticipated due to a number of factors and risks. Certain of these
risks are set out in more detail in the Company's 2020 Annual
Information Form dated March 25, 2021
which has been filed on SEDAR and can be accessed at www.sedar.com.
The forward-looking statements contained herein are made as of the
date hereof, and except as may be required by applicable securities
laws, the Company assumes no obligation to update publicly or
revise any forward-looking statements made herein or otherwise,
whether as a result of new information, future events or
otherwise.
SOURCE Touchstone Exploration Inc.