April 24, 2020 / 5:38 PM / 3 months ago

Canada's Inter Pipeline enters into new C$1 bln loan agreement

April 24 (Reuters) - Canada’s Inter Pipeline Ltd said on Friday it entered into a C$1 billion ($708.77 million) unsecured revolving credit facility as global crude prices plunged because of excess supplies and demand tumbled due to the coronavirus crisis.

The new agreement has an initial term of 16-months and is substantially similar to its existing C$1.5 billion revolving credit facility that matures in December 2024, the pipeline operator said.

The coronavirus pandemic has put a strain on Canada’s pipeline operators as oil producers scale back output to deal with a supply glut and rout in crude prices as fuel demand falls.

The company has also extended the maturity date of its drawn C$500 million term loan facility by two-years to August 2022.

“Inter Pipeline now has $2.2 billion of available capacity on its existing revolving credit facilities and is well positioned to refinance any near-term debt obligations in the event of a prolonged capital market disruption,” Chief Financial Officer Brent Heagy said in a statement.

$1 = 1.4109 Canadian dollars Reporting by Arunima Kumar and Shanti S. Nair in Bengaluru; Editing by Shailesh Kuber

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