Alberta Investment Management Corp. has entered into a strategic financing relationship with Razor Energy Corp., an oil and gas company headquartered in Calgary, Alta.
AIMCo has committed a non-revolving term loan facility for the amount of $30 million for a four-year term. A portion of the proceeds of the facility were used by Razor Energy to fund the recent acquisition of certain oil and gas interests in the Swan Hills area of Alberta, which included about 15,000 net acres of undeveloped land.
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The remaining proceeds of the facility will be used by Razor Energy to fund its development program and for general corporate purposes, according to a news release. In addition, in consideration of AIMCo’s provision of the facility, Razor Energy has issued approximately 10.05 per cent of its common shares to AIMCo.
“Our team of investment professionals are attuned to the challenges that face Alberta’s energy industry and we are confident that the highly-experienced executive team at Razor Energy have put in place a strategic direction that will see the company realize the full benefit of future growth opportunities,” said Peter Pontikes, AIMCo’s executive vice-president of public equities.
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