CALGARY, May 22, 2014 /CNW/ - Connacher Oil and Gas Limited (CLL - TSX; "Connacher" or the "Company") stated today that it has placed the previously announced first lien term loan facility in an aggregate principal amount of US dollar equivalent of C$140 million (the "Term Loan Facility"). The Term Loan Facility will be placed with a syndicate of institutional investors, bears interest at LIBOR plus 6% (1% LIBOR floor) and is expected to close and be funded on or about May 27, 2014, subject to customary closing conditions. The Company also requested lender consent to amend and restate the existing senior secured revolving credit facility (the "Credit Facility") to $30 million and extend the maturity date to December 31, 2016. Connacher will use the net proceeds to repay outstanding borrowings under the existing Credit Facility, fund the development of its in situ oil sands properties, pay fees and expenses related to the transaction and for general corporate purposes. About Connacher Connacher is a Calgary-based in situ oil sands developer, producer and marketer of bitumen. The Company holds a 100 per cent interest in approximately 450 million barrels of proved and probable bitumen reserves and operates two steam assisted gravity drainage facilities located on the Company's Great Divide oil sands leases near Fort McMurray, Alberta. Forward Looking Information This press release contains forward looking information, including but not limited to, the expectations relating to the arrangement of the Term Loan Facility and the amendment and reduction of the existing Credit Facility and the timing thereof . Forward looking information is based on management's expectations regarding the Company's future financial position, the Company's future growth, results of operations and production, future commodity prices and foreign exchange rates, future capital and other expenditures (including the amount, nature and sources of funding thereof), plans for and results of drilling activity, environmental matters, business prospects and opportunities and future economic conditions. Forward looking information involves significant known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to: that the Company may not be successful in the syndication of the Term Loan Facility, that the Term Loan Facility may not provide adequate funds to fund the Company's growth capital program, the risks associated with the oil and gas industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve and resource estimates, the uncertainty of geological interpretations, the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), risk of commodity price and foreign exchange rate fluctuations, risks associated with the impact of general economic conditions, risks and uncertainties associated with maintaining the necessary regulatory approvals and securing the financing to proceed with the operation and continued expansion of the Great Divide oil sands project. Additional risks and uncertainties affecting Connacher and its business and affairs are described in further detail in Connacher's Annual Information Form for the year ended December 31, 2013. Although Connacher believes that the expectations in such forward looking information are reasonable, there can be no assurance that such expectations shall prove to be correct. The forward looking information included in this press release is expressly qualified in its entirety by this cautionary statement. The forward looking information included herein is made as of the date of this press release and Connacher assumes no obligation to update or revise any forward looking information to reflect new events or circumstances, except as required by law. SOURCE Connacher Oil and Gas Limited Chris Bloomer Chief Executive Officer Greg Pollard Chief Financial Officer Connacher Oil and Gas Limited Phone: (403) 538-6201 Fax: (403) 538-6225 Suite 900, 332 - 6th Avenue SW Calgary, Alberta T2P 0B2 firstname.lastname@example.org www.connacheroil.com To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/May2014/22/c9368.html CO: Connacher Oil and Gas Limited ST: Alberta NI: OIL
Connacher Announces New First Lien Term Loan Facility
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