Business & Investment

Essential Energy Services announces enhancements and fixes for credit facilities

Article content

GLOBE NEWSWIRE, Alberta, November 25, 2021 — Essential Energy Services Ltd. (TSX: ESN) (“Essential” or “Company”) has a second amendment to the June 26, 2018 credit. Announced that it has signed. A facility agreement with a lender syndicate consisting of the National Bank of Canada, ATB Financial, and the Western Bank of Canada (“Lender”) (along with the first modified line of credit, “Modified Credit Line”). The modified line of credit, along with the amendments to certain terms and conditions, will essentially provide an extension of the revolving secured line of credit maturity date to November 30, 2024.

advertisement

Article content

Primary fix
The main changes to the modified line of credit are:

  • Extension of maturity date from June 30, 2022 to November 30, 2024.
  • You can borrow $ 25 million. Prior to this amendment, the amount that could be borrowed was (a) $ 25 million, whichever was less. (B) $ 15 million during the contract relief period scheduled to end on December 31, 2021. (C) Borrowing-based calculations. The contract relief period and related restrictions associated with borrowing-based calculations have been removed.
  • Dividends or distributions in the form of regular course issuer bids are such distributions that the default pending or default events do not continue, as defined in the modified line of credit. Currently permitted unless it arises from.

advertisement

Article content

Financial covenants
Financial covenants include:

  • The ratio of debt to capitalization cannot exceed 50%.
  • The ratio of funded debt to EBITDA cannot exceed 3.5 times.
  • Fixed rate coverage must be at least 1.25x.

The calculation conditions for Covenants are as defined in the Modified Credit Facility.

Financial status
On November 25, 2021, Essential had no long-term debt and had a cash balance of $ 7.6 million.

“This cash balance puts Essential in a very strong financial position,” said Garnet Amundson, President and CEO. “Essential’s continued cash positive position is a strategic advantage as the industry moves into the expected growth phase. The modified credit facility gives Essential the financial flexibility to support its operations. We will continue to provide. We thank the lenders for their support and commitment to Essential. “

advertisement

Article content

Description of future prospects

Within the meaning of the applicable securities law, this news release contains “forward-looking statements” and “forward-looking information” (hereinafter collectively referred to as “forward-looking statements”). It contains. Forward-looking statements are not historical facts and are not always, but generally “expect”, “plan”, “expect”, “believe”, “intention”, “estimate”, A description identified by the word “continue”. , “Project”, “possible”, “budget” and similar expressions, or “occur”, “occur”, “possible”, “possible”, or “need to occur” Or an event or condition that will be achieved. This news release contains forward-looking statements regarding the outlook for industry activity. Essential cash positive positions are a strategic advantage and the financial flexibility provided by the modified credit facility.

advertisement

Article content

We believe that the material factors, expectations and assumptions contained in such forward-looking statements are reasonable based on the information available on the day such statements are made. You should not place excessive reliance on forward-looking statements. We cannot guarantee that such statements and information will be proven to be correct, and such statements do not guarantee future performance. Forward-looking statements, by their very nature, carry inherent risks and uncertainties as they correspond to future events and circumstances.

Actual results and results may differ materially from those currently expected due to many factors and risks. These include, but are not limited to, known and unknown risks. This includes the risks listed on the company’s annual information form (a copy of which can be found in SEDAR’s Essential profile. www.sedar.com ). Therefore, the reader should not overemphasize or trust the forward-looking statements. Readers should note that the list of factors is not exhaustive.

advertisement

Article content

Statements containing forward-looking statements contained in this news release are made as of the date they are given and we publish forward-looking statements, whether or not they are the result of new information. Disclaims the intent or obligation to update or revise. Events or other, unless required by applicable securities law. The forward-looking statements contained in this news release are explicitly modified by this notice.

Additional information about these and other factors that may affect our business and financial results is included in the reports submitted to the relevant securities regulators and can be accessed from SEDAR’s Essential profile. www.sedar.com ..

advertisement

Article content

About essentials

Essential provides oilfield services primarily to oil and gas producers in western Canada. Essential provides completion, production, and well repair services to a diverse customer base. Services are provided by coil tubes, fluid and nitrogen pumping, and sales and rental of downhaul tools and equipment. Essential offers one of Canada’s largest coil tube fleets. For more information, please visit the following URL: www.essentialenergy.ca ..

TSX has not endorsed or denied the content of this news release.

Available PDF: http://ml.globenewswire.com/Resource/Download/6574e92b-4daf-4616-ad69-2187aead8745

For further information, please contact: Garnet K. Amundson                 President and CEO Phone: (403) 513-7272 service@essentialenergy.ca

Primary logo

advertisement

comment

Postmedia maintains a lively yet civic discussion forum and encourages all readers to share their views on our articles. Moderation can take up to an hour for comments to appear on your site. Comments are relevant and should be stored with respect. You have enabled email notifications. You will now receive an email when you receive a reply to a comment, when the comment thread you are following is updated, or when a user follows a comment.Please see us Community guidelines For details and details of the adjustment method Email Configuration.

Essential Energy Services announces enhancements and fixes for credit facilities

https://financialpost.com/globe-newswire/essential-energy-services-announces-extension-and-amendment-of-its-credit-facility Essential Energy Services announces enhancements and fixes for credit facilities

Back to top button