CALGARY, Alberta, Aug 26 - Opti Canada Inc (OPC.TO), whose sole business is a minority stake in a Nexen Inc (NXY.TO) oil sands project, said on Wednesday it has negotiated eased restrictions on a key C$350 million ($318 million) credit facility.
Opti's lenders have agreed to relax some covenants for its loan relating to how much debt it can carry in relation to a measure of its cash flow.
The company said the looser restrictions would help ensure it doesn't risk breaching its debt covenants, which have been a worry to Opti investors since oil prices plunged last year.
Opti shares have plunged 92 percent in the past 12 months as investors worried the company would run out of cash. As well, Opti's profits from its 35 percent stake in Nexen's new Long Lake oil sand project have been scant as its partner struggles to boost output.
Opti expects the new measures will give it some breathing room as the Long Lake project works out its kinks.
"The successful execution of the amendments to our revolving credit facility ... is expected to provide financial flexibility as the Long Lake project ramps up," Chris Slubicki, Opti's chief executive said in a statement.
Opti shares fell 3 Canadian cents to C$1.49 on Wednesday on the Toronto Stock Exchange.
($1=$1.10 Canadian)
Opti's lenders have agreed to relax some covenants for its loan relating to how much debt it can carry in relation to a measure of its cash flow.
The company said the looser restrictions would help ensure it doesn't risk breaching its debt covenants, which have been a worry to Opti investors since oil prices plunged last year.
Opti shares have plunged 92 percent in the past 12 months as investors worried the company would run out of cash. As well, Opti's profits from its 35 percent stake in Nexen's new Long Lake oil sand project have been scant as its partner struggles to boost output.
Opti expects the new measures will give it some breathing room as the Long Lake project works out its kinks.
"The successful execution of the amendments to our revolving credit facility ... is expected to provide financial flexibility as the Long Lake project ramps up," Chris Slubicki, Opti's chief executive said in a statement.
Opti shares fell 3 Canadian cents to C$1.49 on Wednesday on the Toronto Stock Exchange.
($1=$1.10 Canadian)
