On April 28, 2021, Distinction Energy Corp., together with Kiwetinohk Resources Corp., completed a $335 million acquisition of certain interests in the Simonette area of northwest Alberta from Ovintiv Canada ULC. The acquisition consisted of certain multi-zone, oil and liquids-rich natural gas producing assets in the Simonette area of northwest Alberta, including associated infrastructure and additional assets in the Willesden Green, Ferrier and other areas of Alberta.
The purchase price of the acquisition was shared equally between Distinction and Kiwetinohk, with each acquiring a 50% interest in the assets. Distinction’s portion of the acquisition was financed with cash on hand and a new $127.5 million credit facility from a syndicate of lenders including ATB Financial (as agent), Bank of Montreal and National Bank of Canada. The new credit facility amends and restates the Company’s existing credit facility in its entirety and includes, among other amendments, the addition of a syndicated facility, the removal of the accordion feature and an extension of the maturity date to May 31, 2022. The transaction also included concurrent amendments to Distinction’s investor agreement with Kiwetinohk and Luminus Energy IE Designated Activity Company and management services agreement.
Cassels acted for Distinction in connection with the acquisition and the new credit facility.