Fresh from closing a $98-million acquisition of southeast Saskatchewan light oil properties from Lightstream Resources Ltd., Spartan has shelled out another $17-million for oil properties in the province.THOMASLENNE
Lightstream Resources Ltd. has missed an interest payment on its sizable debt, bringing it a month away from default unless it can strike a new deal with lenders or sell assets.
The company, which has been hamstrung by its debt burden for more than a year, said it deferred paying $32.1-million (U.S.) to holders of its 9.875-per-cent second-lien notes.
Lightstream is one of several Canadian energy companies struggling with debt levels that prevent them from reinvesting cash into operations or paying dividends. The company has slashed capital spending as the collapse in crude prices halved its revenues.
The Calgary-based company is in talks with its lenders about a restructuring that could include a conversion of debt to equity as a way to dig itself out, a move that would spell major dilution for current shareholders. It is also looking to sell assets.
The company's shares fell more than 6 per cent to 20 cents (Canadian) on the Toronto Stock Exchange late Wednesday. They are down 82 per cent over the past year.
Lightstream has until July 15 to make the interest payment on the second-lien notes before defaulting.
"We view this negatively given the company does not currently have sufficient cash on hand to make the payment and now has a very limited time to seek a funding alternative," RBC Dominion Securities said in a research note.
In the meantime, Lightstream has until the end of July to make up a shortfall of $120-million on its credit line after lenders cut it to a level below the amount it had already withdrawn .
Debt-servicing payments make up $15 per barrel of Lightstream's cost structure, according to FirstEnergy Capital Corp.