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Cardinal Energy Ltd. Announces Extension of Credit Facility Redetermination Date and Debentureholder Meeting

CALGARY, Alberta, May 25, 2020 (GLOBE NEWSWIRE) -- Cardinal Energy Ltd. ("Cardinal" or the "Company") (TSX: CJ) has received approval to extend the revolving period under the Company's $325 million reserves-based credit facility (the "Credit Facility") and intends to call a meeting of the holders of its 5.50% extendible convertible unsecured subordinated debentures due December 31, 2020 (the "Debentures") to amend the Debentures with the addition of an exchange right.
Credit FacilityThe Company's $325 million Credit Facility was available on a revolving basis until May 23, 2020. On May 22, 2020, subject to certain conditions, the Company signed an extension until June 30, 2020 in order for the syndicate to have more time to assess current market conditions and the effect of potential government assistance programs on the Credit Facility. Among others, the conditions include a cap on the drawings available to the Company under the Credit Facility and that no drawings can be used to redeem or repay the Debentures. The Company anticipates that the draw cap and some of the other conditions will only be in place on an interim basis until a longer term extension and terms are finalized.Debentureholder MeetingCardinal intends to seek the approval of holders (the "Debentureholders") of Debentures to make various amendments (the "Amendments") to the indenture (the "Indenture") governing the Debentures with the addition of an exchange right (the "Exchange Right"). The Exchange Right will provide Debentureholders the right, but not the obligation, to exchange their Debentures for a new second series of 8.00% convertible unsecured subordinated debentures (the "Extended Debentures").
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