Nashville, Tennessee and Vancouver, British Columbia–(Newsfile Corp. – May 2, 2022) – Alpine Summit Energy Partners, Inc. (TSXV: ALPS.U) (OTCQX: ASEPF) (“Alpine Summit” or the “Company”) is pleased to announce the successful closing of an asset-backed securitization of certain producing oil and gas wells (the “Facility”). The Facility is being led by an insurance company and has an initial size of US$80 million with additional capacity to expand up to US$150 million in total. The Facility is secured by working interests in a subset of Alpine Summit’s producing assets, which are held by an affiliate of its operating subsidiary, HB2 Origination, LLC, and charges interest at 7.00%.
“Building on the strength of the recently announced Q4 earnings, closing of the Red Dawn 1 development partnership, along with Development Partnership 5, and our warehouse facility with Bank7, the Facility consolidates our balance sheet, while increasing liquidity to support the Company’s positive momentum and growth trajectory,” commented Bill Wicker, Alpine Summit’s CIO.
Proceeds from the Facility will be used to repay existing indebtedness and the Company’s asset-backed preferred instrument (the “Preferred Instrument“) and for general corporate purposes.
With the closing of the Facility, the Company completes the full refinancing of the Preferred Instrument. The Preferred Instrument was put in place to buy out a legacy partner; at the current share price, the buyout has captured approximately US$45 million of net value for the Company.
About Alpine Summit Energy Partners, Inc.
Alpine Summit is a U.S.-based company that operates and develops oil and gas assets. For additional information on the Company, please visit