Epsilon Announces New and Revised Senior Secured Reserve-Based Revolving Credit Facility

Core Points - Epsilon Energy Ltd. has closed a new senior secured reserve-based revolving credit facility with Frost Bank and Texas Capital Bank, replacing the previous credit facility [1][2] - The new credit facility will initially fund alongside the acquisition of Peak companies, with proceeds allocated to repay Peak's existing term loan of approximately $49.6 million [1][2] - The credit facility has an initial borrowing base of $47.5 million, supported by existing US upstream assets, and will be redetermined after the acquisition [4] Financial Details - The new credit facility has a four-year term, maturing on October 8, 2029 [4] - Interest on drawdowns will be charged at the 3-Month Term SOFR rate plus a margin of 3-4%, depending on facility utilization, with payments due quarterly [4] - The facility allows for semi-annual redeterminations, enhancing the company's liquidity and balance sheet strength [2][4]