CALGARY, AB, Feb. 19, 2021 /CNW/ - Topaz Energy Corp.
(TSX: TPZ) ("Topaz" or the "Company") is pleased to announce that
it has entered into an amended and restated credit agreement with a
syndicate of Canadian banks providing for a $300 million combined operating and syndicated
credit facility due February 19, 2024
("Amended Credit Facility"). The Amended Credit Facility
replaces the Company's prior credit facility, which was undrawn,
due June 10, 2022, and provided for
aggregate borrowing capacity of $125
million ("Prior Credit Facility"). The Amended Credit
Facility provides for a permitted increase to $400 million, subject to agent consent, and is
subject to covenants which are consistent with the covenants under
the Prior Credit Facility.
Strategic Rationale
The Company's business model is supported by its conservative
capital structure which currently has no debt, a net positive cash
position, and significant free cash flow which, together, provide
financial flexibility. The Amended Credit Facility includes
improved revisions to the variable grid used to determine the
interest rate payable on borrowings by the Company, which results
in enhanced financial flexibility at attractive pricing to position
the Company to strategically execute accretive growth
transactions.
2020 Results and Updated 2021 Guidance
Topaz plans to release its annual and fourth quarter 2020
results and updated 2021 guidance estimates on Wednesday, March 17, 2021 after markets
close. Topaz will host a conference call on Thursday, March 18, 2021 starting at 9:00 a.m. MST (11:00 a.m.
EST). To participate in the conference call, please
dial 1-888-664-6392 (North American toll free) a few minutes prior
to the call. Conference ID is 26428688.
ABOUT THE COMPANY
Topaz is a unique royalty and energy infrastructure company
focused on generating free cash flow growth and paying reliable and
sustainable dividends to its shareholders, through its strategic
relationship with one of Canada's
largest natural gas producers, Tourmaline, an investment grade
senior Canadian E&P company, and leveraging industry
relationships to execute complementary acquisitions from other
high-quality energy companies, while maintaining its commitment to
environmental, social and governance best practices.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements and
forward-looking information (collectively, "forward-looking
statements") that relate to the Company's current expectations and
views of future events. These forward-looking statements relate to
future events or the Company's future performance. Any statements
that express, or involve discussions as to, expectations, beliefs,
plans, objectives, assumptions or future events or performance
(often, but not always, through the use of words or phrases such as
"will likely result", "are expected to", "expects", "will
continue", "is anticipated", "anticipates", "believes",
"estimated", "intends", "plans", "forecast", "projection",
"strategy", "objective" and "outlook") are not historical facts and
may be forward-looking statements and may involve estimates,
assumptions and uncertainties which could cause actual results or
outcomes to differ materially from those expressed in such
forward-looking statements. No assurance can be given that these
expectations will prove to be correct and such forward-looking
statements included in this news release should not be unduly
relied upon. These statements speak only as of the date of this
news release. In particular and without limitation, this news
release contains forward-looking statements pertaining to the
following: the benefits to be derived from the Company's business
model, capital structure and Amended Credit Facility, including
enhanced financial flexibility s and the ability to strategically
execute accretive growth transactions; and the Company's business
as described under the heading "About the Company" above.
Forward–looking information is based on a number of assumptions and
is subject to a number of risks and uncertainties, many of which
are beyond the Company's control, which could cause actual results
and events to differ materially from those that are disclosed in or
implied by such forward–looking information. Such risks and
uncertainties include, but are not limited to, the failure to
complete acquisitions and the failure to realize some or all of the
anticipated benefits of acquisitions and the factors discussed
under "Notice to Investors – Forward-Looking Information" and "Risk
Factors" in the supplemented PREP prospectus dated October 19, 2020. Topaz does not undertake any
obligation to update such forward–looking information, whether as a
result of new information, future events or otherwise, except as
expressly required by applicable law.
Non-GAAP Financial Measures
In addition to using financial measures prescribed by
International Financial Reporting Standards ("IFRS" or "GAAP"),
references are made in this news release to "free cash flow", which
is a measure that does not have any standardized meaning as
prescribed by IFRS. Management uses this term for its own
performance measures and to provide shareholders and potential
investors with a measurement of the Company's efficiency and its
ability to generate the cash necessary to fund dividends and a
portion of its future growth expenditures or to repay debt.
Accordingly, investors are cautioned that this non-GAAP financial
measure may not be comparable to similarly defined measures
presented by other entities and should not be considered in
isolation nor as an alternative to net income (loss) from
continuing operations or other financial information determined in
accordance with GAAP as an indication of the Company's
performance. References to "free cash flow" are to the amount
of cash estimated to be available for dividends to shareholders in
accordance with the Company's dividend policy and is defined as
cash flow less capital expenditures, where "cash flow" is defined
as cash from (used in) operations before changes in non-cash
working capital.
SOURCE Topaz Energy Corp