CALGARY, ALBERTA--(Marketwire - Sept. 14, 2012) - Tuscany International Drilling Inc. (TSX:TID) (COLOMBIA:TIDC) ("Tuscany" or the "Company") is pleased to announce that the Company's existing credit agreement with Credit Suisse and certain other lenders has been further amended and restated. The US$210 million term loan that is currently outstanding has been extended and now matures on September 14, 2017 with the quarterly principal repayments now commencing on December 15, 2013, other than two US$2 million principal repayments required to be made on each of June 15, 2013 and September 15, 2013. This change will increase the Company's working capital allowing acceleration of optimization opportunities including the purchase of related equipment currently being rented by the Company and ongoing refurbishments which will have a positive effect on margins. The term loan facility was not increased.
In addition, the revolving facility has been increased by US$20 million to US$45 million and now matures on September 14, 2015. Tuscany has not drawn down any of the increased amount and US$25 million remains available under the revolving facility.
The financial covenants have also been amended and security required by the lenders has been reduced. In addition, the Company is no longer required to enter into hedging agreements to protect against currency risk and interest rate fluctuations.
Interest continues to accrue on the term loan at a 3-month LIBOR rate plus a 6.5% margin and is payable quarterly. Interest on the revolving loans continues to accrue, at Tuscany's election, either at a 3-month LIBOR rate plus a 6.5% margin or at alternate base rate plus a 6.5% margin.
Tuscany, a corporation headquartered in Calgary, Alberta, is engaged in the business of providing contract drilling and work‐over services along with equipment rentals to the oil and gas industry. The Company is currently focused on providing services to oil and natural gas operators in South America and Africa.
The listing of Tuscany's common shares on the Colombian Stock Exchange does not imply a certification by the BVC of the value or the solvency of Tuscany.
The Toronto Stock Exchange has not reviewed, nor does it accept responsibility for the adequacy or accuracy of this release.