Essential Energy extends and amends credit facility

Chicago, July 9 – Essential Energy Services Ltd. extended its revolving credit facility to June 30, 2022 and revised certain conditions, according to a press release.

The syndicate of lenders includes National Bank of Canada, ATB Financial and Canadian Western Bank.

The commitment for the revolver has been reduced to C$25 million from C$50 million, with the maximum amount that can be drawn decreased to the lesser of C$15 million or the borrowing base during the covenant relief period.

In terms of covenant relief, the funded debt-to-capitalization ratio cannot exceed 20%.

The funded debt to bank EBITDA ratio and the fixed-charge coverage ratio covenants will not be tested during the covenant relief period, until Dec. 31, 2021.

Added to the covenant relief is a minimum trailing 12-month bank EBITDA covenant of negative C$10 million.

The company has the option to terminate the covenant relief period early.

On July 9, Essential had a cash balance of C$6.6 million net of long-term debt.

Essential is an oilfield services provider based in Calgary, Alta.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.