Lynden Energy (TSX-V: LVL and OTC Other: LVLEF) reported today that it has executed a preliminary term sheet with Texas Capital Bank of Dallas, Texas which contemplates the provision of a three year reducing revolving line of credit in an amount up to US$50 million. If implemented, the Credit Facility will provide for an initial borrowing base of US$9.5 million.
The Credit Facility will bear interest determined by the percent of the borrowing base utilized and by elections made by the company. A minimum interest rate of 4.5% is required on borrowings under the Credit Facility. Payments under the Credit Facility will be required to the extent that outstanding principal and interest exceed the borrowing base. Other fees will also apply.