Delphi Energy Corp. Announces Extension of Credit Facility

Delphi Energy Corp. (“Delphi” or the “Company”) announces that the semi-annual borrowing base redetermination of its senior credit facility has been finalized.

Effective on the earlier of the closing date for the Recapitalization Transaction (as defined below) and November 29, 2019, and conditional upon completion of the Recapitalization Transaction, the borrowing base of the senior credit facility led by Alberta Treasury Branches has been renewed at $80.0 million. Further, conditional upon completion of the Recapitalization Transaction, the revolving period of the senior credit facility has been extended to May 28, 2020, with the maturity date extended to May 29, 2021.

If the Recapitalization Transaction is not completed before December 13, 2019, then the Company’s next scheduled borrowing base redetermination under the senior credit facility will be on December 13, 2019.

Completion of this semi-annual borrowing base redetermination satisfies one of the conditions to the support by Luminus Management, LLC, on behalf of its pooled investment vehicles (“Luminus”), of the Company’s previously announced recapitalization transaction under the terms of the Recapitalization Transaction Agreement entered into between the Company and Luminus on September 23, 2019 (the “Recapitalization Transaction”). Completion of the Recapitalization Transaction remains subject to the satisfaction of several other conditions, including receipt of required securityholder approvals at the securityholder meetings scheduled to be held on November 15, 2019.

Delphi had previously announced that it had completed the private placement offerings of subscription receipts relating to the Recapitalization Transaction for the maximum total gross proceeds of $46.5 million and reminds its shareholders and noteholders that the management information circular in respect of the securityholder meetings to be held on November 15, 2019 is available on Delphi’s website at www.delphienergy.ca and on Delphi’s SEDAR profile at www.sedar.com.

The board of directors and management of Delphi believe that it is important that the Recapitalization Transaction be approved and implemented to address Delphi’s capital structure and liquidity needs, thereby placing the Company in a stronger position to continue to pursue its business strategy in the near future. Securityholders should refer to the management information circular for additional details with respect to the Recapitalization Transaction and instructions on how to vote at the securityholder meetings.

The Recapitalization Transaction is expected to become effective on or around November 26, 2019 if all of the conditions precedent to such effectiveness are satisfied or waived on or before that date.

Shareholder Questions and Voting Assistance:

Laurel Hill Advisory Group
North American Toll-Free: 1-877-452-7148
Collect Call Outside North America: +1-416-304-0211
Email: assistance@laurelhill.com