CWC Energy cuts existing facility to C$75 million, adds term facility

By Wendy Van Sickle

Columbus, Ohio, July 11 – CWC Energy Services Corp. voluntarily reduced the borrowing base of its syndicated credit facility to C$75 million and negotiated a new five-year C$12.8 million term facility from ATB Financial, according to a news release.

The new borrowing arrangements significantly reduce CWC's overall borrowing costs by lowering standby charges on the syndicated credit facility and realizing a lower interest rate on the term credit facility, the company said.

CWC expects to reduce its borrowing costs by 40 basis points a year.

At June 30, the company had about C$50 million of availability under the credit facility “providing plenty of liquidity with which to continue to grow the business,” the release states.

CWC Energy Services is a contract drilling and well servicing company based in Calgary, Alta.

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