TOUCHSTONE ANNOUNCES THE EXPANSION OF ITS CREDIT FACILITY TO $ 30 MILLION


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CALGARY, AB, 22 December 2021 / CNW / – Touchstone Exploration Inc. (“Touchstone”, “we”, “our”, “our” or the “Company”) (TSX: TXP) (LSE: TXP) is pleased to announce that it has entered into an amended and updated loan agreement with its Trinity based lender offering a 10 million dollars increase in principal balance to $ 30 million (the “Amended Loan Agreement”).

Touchstone currently has $ 15 million of the principal balance of the loan drawn and plans to withdraw the balance $ 15 million balance available before the end of 2021. The amended loan agreement offers increased financial flexibility at an attractive after-tax price.

The amended loan agreement did not change any material terms of the Company’s previous loan agreement, except for an additional underwriting fee of $ 50,000 payable to the lender, equivalent to 0.5% of the principal plus. The following general conditions of the original loan agreement remain applicable:

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Borrower

Touchstone Exploration (Trinidad) Ltd.

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Installation type

Senior Secured Syndicated Loan, with Republic Bank Limited acting as original lender, arranger and administrative agent

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Revised facility amount

$ 30 million

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Main availability period

The capital can be withdrawn before January 1, 2022

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Term

June 15, 2027 – seven years from the initial closing date

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Fixed interest rate

7.85% per annum, payable quarterly in arrears

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Principal amortization schedule

Twenty equal and consecutive quarterly capital repayments from September 15, 2022

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Advance payments

Currently authorized with a 1.0% penalty and 90 days notice, no penalty payable after June 15, 2023

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Collateral

First mortgage on the fixed assets of the Borrower and its subsidiaries and a corporate guarantee from Touchstone Exploration Inc.

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Financial covenants (to be tested initially for the year ended December 31, 2022)

Net senior debt to EBITDA less than 2.5 times

Net senior debt to equity of book value less than 0.7 times

Debt service coverage ratio greater than 2.5 times

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Cash reserve balance

Maintain a balance of at least the equivalent of two quarterly interest payments due

Touchstone Exploration Inc.

Touchstone Exploration Inc. is a Calgary, Alberta company based in the business of acquiring interests in petroleum and natural gas rights and in the exploration, development, production and sale of petroleum and natural gas. Touchstone is currently active in onshore properties located in the Republic of Trinidad and Tobago. The Company’s common shares trade on the Toronto Stock Exchange and the AIM market of the London Stock Exchange under the symbol “TXP”.

Opinion

Forward-looking statements

Certain information provided in this press release may constitute forward-looking statements and information (collectively, “forward-looking statements”) within the meaning of applicable securities laws. These forward-looking statements include, without limitation, forecasts, estimates, expectations and targets for future transactions that are subject to assumptions, risks and uncertainties, many of which are beyond the control of the Company. Forward-looking statements are statements which are not historical fact and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends to”. “,” Estimates “,” projects “,” potential “and similar expressions, or are events or conditions which” will “,” would “,” could “,” could “or” should “occur or be achieved .

Forward-looking statements contained in this press release may include, without limitation, statements relating to the expectations and timing of the withdrawal of the available capital balance from the Amended Loan Agreement. Although the Company believes that the expectations and assumptions upon which forward-looking statements are based are reasonable, forward-looking statements should not be relied upon because the Company cannot guarantee that they will prove to be correct. Because forward-looking statements deal with future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently expected due to a number of factors and risks. Some of these risks are described in more detail in the Company’s 2020 Annual Information Form dated March 25, 2021 which has been filed on SEDAR and can be viewed at www.sedar.com. The forward-looking statements contained herein are made as of the date hereof, and except as required by applicable securities laws, the Company assumes no obligation to publicly update or revise any forward-looking statements made herein. present or otherwise, whether as a result of new information, future events or otherwise.

SOURCE Touchstone Exploration Inc.

For More Information: For more information about Touchstone, please visit our website at www.touchstoneexploration.com or contact: Mr. Paul Baay, President and CEO, Mr. Scott Budau, CEO finance, Phone: 403.750.4487

Related links

www.touchstoneexploration.com

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