Nighthawk Energy has completed the agreement with Commonwealth Bank of Australia (CBA) for the US$100 million Reserve Based Lending (RBL) facility announced last month.
Key Features of the RBL
◾ US$100 million Senior Secured Revolving RBL facility with an initial borrowing base of US$35 million
◾ Four year maturity with potential for extension by agreement
◾ Regular redeterminations based upon Nighthawk's petroleum reserves - first redetermination in late fourth quarter 2014
◾ Interest rates at a competitive premium to US Libor rates enabling Nighthawk to reduce substantially its borrowing costs
◾ The Company will be required to implement a hedging strategy and hedge a proportion of its forward production
◾ Restructuring and reduction of current debt