Ridgeway gets letter of intent for new $100 million credit facility

By Sara Rosenberg

New York, May 1 - Ridgeway Petroleum Corp. has entered into a letter of intent with a New York-based financial institution for a $100 million four-year multiple-advance senior secured credit facility, according to a company news release.

The borrower under the facility would be the company's subsidiary, Ridgeway Arizona Oil Corp.

The facility would have initial availability of $10 million.

The credit facility commitment will be subject to the company completing a minimum $2.5 million equity financing.

Furthermore, the company has agreed to issue, at closing, warrants to purchase an amount of common shares equal to 40% of the number of the shares outstanding on a fully diluted basis $0.50 per share for two years.

The deal is anticipated to closing late in the second quarter.

Ridgeway is a Calgary, Alberta-based oil and gas exploration company.

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