REG - Touchstone Explrtn. - EXPANSION OF CREDIT FACILITY TO US$30 MILLION

Touchstone ExplorationAnnouncement

22/12/2021 07:05

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20211222:nRSV4697Wa&default-theme=true

RNS Number : 4697W  Touchstone Exploration Inc.  22 December 2021

TOUCHSTONE ANNOUNCES EXPANSION OF CREDIT FACILITY TO US$30 MILLION

 

CALGARY, ALBERTA (December 22, 2021) - Touchstone Exploration Inc.
("Touchstone", "we", "our", "us" or the "Company") (TSX, 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:

 

 ·      Borrower                                                                Touchstone Exploration (Trinidad) Ltd.
 ·      Facility type                                                           Senior secured syndicated loan, with Republic Bank Limited acting as initial
                                                                                lender, arranger and administrative agent
 ·      Revised facility amount                                                 US$30 million
 ·      Principal availability period                                           Principal may be withdrawn prior to January 1, 2022
 ·      Term                                                                    June 15, 2027 - seven years from the initial closing date
 ·      Fixed interest rate                                                     7.85% per annum, payable quarterly in arrears
 ·      Principal amortization schedule                                         Twenty equal and consecutive quarterly principal repayments commencing on
                                                                                September 15, 2022
 ·      Prepayments                                                             Currently permitted with a 1.0% penalty and a 90-day notice period, no
                                                                                penalties payable after June 15, 2023
 ·      Collateral                                                              Senior mortgage over fixed assets of the Borrower and its subsidiaries and a
                                                                                corporate guarantee from Touchstone Exploration Inc.
 ·          Financial covenants (to be initially tested for the year            Net Senior Funded Debt to EBITDA less than 2.5 times
 ended December 31, 2022)

                                                                                Net Senior Funded Debt to Book Value Equity less than 0.7 times

                                                                                Debt Service Coverage Ratio greater than 2.5 times
 ·      Cash reserve balance                                                    Maintain a balance of not less than the equivalent of two quarterly interest
                                                                                payments due

 

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".

 

For further information about Touchstone, please visit our website at
www.touchstoneexploration.com (http://www.touchstoneexploration.com/) or
contact:

 

Mr. Paul Baay, President and Chief Executive
Officer                             Tel: +1 (403)
750-4487

Mr. Scott Budau, Chief Financial Officer

 

Shore Capital (Nominated Advisor and Joint Broker)

Daniel Bush / Toby Gibbs / Michael McGloin
                        Tel: +44 (0) 207 408 4090

 

Canaccord Genuity (Joint Broker)

Adam James / Henry Fitzgerald O'Connor / Thomas
Diehl                       Tel: +44 (0) 207 523 8000

 

Camarco (Financial PR)

Billy Clegg / Emily Hall / Lily Pettifar
                                    Tel:
+44 (0) 203 781 8330

 

Advisories

 

Forward-Looking Statements

 

Certain information provided in this announcement 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 announcement 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 (http://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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCFIFIDFLLFFIL